FOR IMMEDIATE RELEASE
Press Release - Sale of Robinson Centre, Singapore
30th December, 2019
A 20-storey investment grade office building in Singapore’s CBD was sold to a private fund managed by ARA Asset Management Limited. Singapore’s commercial real estate market is expected to continue to attract institutional and private wealth investors in the coming new year.
SINGAPORE, 30 December 2019 – Sakal Real Estate Partners is pleased to announce their successful brokerage of the sale of Robinson Centre on 61 Robinson Road, a prime investment grade office building in Singapore, to a private fund managed by ARA Asset Management Limited. Sakal acted for the vendor in this off-market disposition. The sale has recently completed.
Robinson Centre is a 20-storey office building situated along Robinson Road within Singapore's Central Business District (CBD) with a net leasable area of over 130,000 sqft. It is the last enbloc office asset sold in Singapore in 2019 following an active commercial investment sales market that saw in excess of S$7b of commercial investments (deals of more than S$5m each) change hands.
"Singapore's political, socio economic stability, market transparency and clear rule of law are just some merits investors can look forward to investing in Singapore. The office market remains a favourite sector amongst institutional investors. Robust rental growth is expected in the near to midterm, supported by strong demand and limited new supply. Tenants' displacement from the potential withdrawal of 15-year leasehold transitional office space that had been tendered out across 2007 to 2011 could fuel rental rises too. The displaced area amounts to close to 1 million square foot." Says Steven Ming, managing director of Sakal Real Estate Partners.
Other than institutional investor interest, Sakal expects increasing investor interest from private wealth as well especially given the growing uncertainty in the region in particular Hong Kong.
"Anecdotally, we are receiving heightened level of enquiries from Hong Kong domiciled investors. If uncertainties in Hong Kong persist, we believe that these preliminary interests will materialise into transactions over the course of the new year. Beneficiary sectors could be luxury residential, conservation commercial shophouses, strata offices and smaller to midsized enbloc office buildings." Says Ming.
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About Sakal Real Estate Partners Pte Ltd: SAKAL (高明) is a premier Singapore based real estate investment advisory and brokerage house. We focus on larger capital transactions within the Singapore markets. The team comprises partners collectively with extensive experience in capital markets and agency. We work collaboratively with advisors that are adept in urban planning, value creation and development to better deliver winning holistic solutions to our clients in the divestment and investment process.