Commerz Actual, the home arm of German Commerzbank, has sold its 71 Robinson Road workplace in Singapore to a Sun Venture subsidiary for S$655m (US$475.7m).
SV Robinson, a actual estate investment business and a member of the Sun Venture group, acquired the 13-storey home from Commerz Real’s open-ended actual estate fund, hausInvest, the seller announced.
The completely-let home presents 22,000 sq.m. of workplace space in the city centre and counts WeWork as one particular of its tenants, possessing occupied 3 floors in the creating considering the fact that 2017.
Commerz Actual purchased the then project improvement in 2008.
“Asia remains an exciting industry for new acquisitions for hausInvest,” stated Henning Koch, worldwide head of transaction management at Commerz Actual.
What the industry says
Chris Fossick, JLL CEO Singapore and Southeast Asia, stated Singapore workplace transaction volumes have been close to $four.6bn so far this year and have been most likely to attain a new decade higher in 2019.
“Demand for workplace space in Singapore is driven by the depth and diversity of the Singapore economy – in specific technologies, qualified solutions and the monetary solutions industries are thriving,” he stated.
“It is also a validation of the re-generation of the Tanjong Pagar/Robinson Road precinct that has been rejuvenated by new infrastructure and improvement.”
Fossick noted there was a deep pool of capital chasing possibilities for industrial space in Singapore, with 71 Robinson Rd attracting sturdy bidding from a mainly institutional investor base with core/core+ investment mandates.
“A massive element of the draw for investors are increasing workplace rents,” the CEO stated. “Singapore’s prime workplace rents are anticipated to develop 33% involving 2019 and 2022 – the highest globally, according to information from JLL.”
“Supply of workplace space in the subsequent couple of years is anticipated to be tight, as owners of older workplace buildings capitalize on current government preparing incentives to redevelop their assets for new integrated life-perform-play buildings. The ‘CBD incentive program’ provides creating owners in the core CBD precinct possible upside on future redevelopment.”
JLL, CBRE, Dentons and EY advised Commerz Actual on the sale. Commerz Actual has €31bn of assets beneath management.
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