Ravi Chandran
Cushman & Wakefield announced on April 18 that they have brokered the sale of of an office building – 7 & 9 Tampines Grande – to Evia Real Estate and Metro Holdings Limited. The Capital Markets team at Cushman & Wakefield secured the buyer on behalf of Alpha Investment Partners and City Developments Limited.
The office building comprise a pair of eight-storey premium Grade
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A office towers linked by a double-volume entrance lobby with retail units on the ground floor. It is located in Tampines Regional Centre (TRC), Singapore’s first and most established regional centre.
The office building has a net lettable area of 287,596 sq ft and balance lease of approximately 87 years. Its existing tenant roster include Hitachi Asia, BNP Paribas and AIA.
Shaun Poh, Executive Director, Capital Markets Group who led the negotiations, said “The Singapore commercial market, particularly the decentralised office micromarket, is at an inflection point and is poised to deliver strong growth over the next few years. The sale of 7 & 9 Tampines Grande demonstrates investor confidence in this tightly-held Grade A micromarket.”
TRC is the focus of commercial activity for the eastern region. It is a natural choice for companies, including many major banks and insurance companies that want to establish themselves in a suburban location with a comprehensive range of amenities and impressive infrastructure.
The Greenmark Platinum certified office building is well connected via both private and public transport.
The Tampines MRT Interchange Station that is part of both East-West line and Downtime line is within 5 minutes’ walk, with one of the station’s exits located opposite the Property.
The premium office building is also easily accessible by several major expressways such as Tampines Expressway (TPE), East Coast Parkway (ECP) and Pan Island Expressway (PIE). Business executives who travel overseas frequently will also have the added convenience of its proximity to Changi International Airport. The proposed cross-island MRT line will potentially improve connectivity in the future.
The Metro Group said in a press release that they entered into a 50% joint-venture with an affiliate of SRIF GP Pte. Ltd. (“SRIF”), an independent third party, to jointly acquire 7 & 9 Tampines Grande.
7 & 9 Tampines Grande is a premium Grade-A office building in Singapore.
The property is reportedly being sold at $395 million valuation. The Metro Group said the purchase consideration to acquire 50% of the issued shares of the Target Company is at approximately S$19.4 million mainly comprises the consolidated net asset value of the Target Company and the PropCo, and to acquire the related shareholders loans of approximately S$26.2 million.
The total purchase consideration for 50% of the issued shares of approximately S$45.6 million will be subject to adjustments upon completion date. Further, the Purchase Consideration was arrived at on a willing buyer willing seller basis after taking into account inter alia the expected net income to be derived from the Property.
The Property, two blocks of 8-storey office towers linked by a double-volume entrance lobby with retail and F&B outlets on the ground floor, is a premium Grade-A commercial development with site area and gross floor area of approximately 86,110 square feet (“sq ft”) and 361,660 sq ft respectively.
The Property is situated in Tampines Regional Centre (“TRC”), the first and most established regional centre in Singapore. Just 25 minutes away from the Central Business District (“CBD”) and a 10-minute drive from Changi Airport, it is also well connected by both private and public transport, and easily accessible via major expressways. The Tampines MRT Interchange Station that is part of both East-West line and Downtown line is within 5 minutes’ walk, with one of the station’s exits directly opposite the Property.
The Property is a fairly new development built to a high specification. It was also conferred the Green Mark Platinum Award by the Building and Construction Authority and LEED Gold Certification by US Green Building Council. Its environmentally sustainable office space is increasingly demanded by high quality corporate occupiers.
The Property has a total net lettable area of approximately 288,000 sq ft and has achieved approximately 91% of committed occupancy rate. The tenants profile spans across a well diversify mix from conglomerate, technology, financial services and insurance industry and currently anchored by leading international names such as Hitachi Asia Ltd, Aldwych International Pte Ltd, NCR Asia Pacific Pte Ltd, AIA Singapore Private Limited and Sysmex Asia Pacific Pte. Ltd..
The key property information are as follows:
| Location | Lot 2559K of Mukim 29 located at 7 Tampines Grande, Singapore 528736 and 9 Tampines Grande, Singapore 528735 |
| Completion | 2009 |
| Tenure | 99 years leasehold from 20 August 2007 |
| Site Area | 86,110 sq ft |
| Gross Floor Area | 361,660 sq ft |
| Committed Occupancy Rate | Approximately 91% |
| Key Tenants | Hitachi Asia Ltd, NCR Asia Pacific Pte Ltd, Aldwych International Pte Ltd, AIA Singapore Private Limited, Sysmex Asia Pacific Pte. Ltd |
| Car Park | 164 lots |
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