OCBC has created for sale a good 12-storey freehold office mass at a hundred and ten Robinson Route, with a great indicative price tag of S$45 million.
The value translates to regarding S$3, 162 per block foot depending on the building’s world-wide-web lettable place (NLA) of 14, 233 square feet.
Your banker does not enjoy any space in the establishing; instead they have leased out space to tenants. The occupancy charge is seventy six per cent plus the average driving rent with existing rents is about S$4. 80 every square base a month. Depending on the property’s recent income, S$45 million price tag reflects a gross yield of 1. 38 per cent.
However , there is upside for rental income from leasing out the vacant space as well as from achieving positive rent reversion for the space that is currently leased.
110 Robinson Road’s existing gross floor area (GFA) is estimated, but yet to be verified, at 22, 123 sq ft – which reflects a plot ratio of 11. 94. This exceeds the 11. 2 plot ratio designated for the commercial-zoned site under Master Plan 2014. While the property does not have untapped GFA, there is scope to upgrade it through a major refurbishment exercise, and thereafter to achieve higher rentals, or even to do strata office sales. The building could have just one strata title per floor given its small size.
The building was built in the 1980s. OCBC is divesting the asset as it does not use it for its own operations. Moreover it has received unsolicited offers. At S$45 million, the deal size is very palatable; this should appeal to not only smaller institutional investors and corporate end-users but also high net worth individuals and boutique developers.
Market watchers suggest that 110 Robinson Road will be keenly eyed by the owners of the next door properties on either side – two offshore entities managed by Sin Capital Group which own Finexis Building at 108 Robinson Road; and Grace Global, which owns Robinson 112.
The timing of the launch of 110 Robinson Road’s tender is in tandem with the sudden surge in affinity for Singapore place of work assets after the recent gross sales of Okazaki, japan Square Podium 1 on Marina Perspective (at S$3. 38 million or regarding S$2, 800 psf with NLA) plus the Straits Forex trading Building on Battery Route (at S$560 million as well as S$3, 524 psf with NLA).
At the begining of 2014, Exento Capital got such a half-stake on Finexis Establishing in a cope that appraised the office mass, which is also 12 storeys and freehold, for S$2, two hundred fifity psf for the building’s strata area of 53, 830 sq ft, which can be close to it has the total net lettable area.
Earlier, in late 2011, Sin Capital acquired its first 50 per cent in Finexis Building; that purchase valued the property at S$1, 900-plus psf on strata area.
If either Sin Capital or Grace Global were to clinch 110 Robinson Road, they could do a major refurbishment or a redevelopment involving their respective property and 110 Robinson Road – to achieve a longer road frontage and a bigger floor plate.