Am Alpha Sell Office Building 112 Robinson
Munich-based family office AM alpha is currently offering the sale of a prime freehold office building located in the Central Business District. The 112 Robinson building is up for sale for a staggering $346.7 million, which equates to approximately $3,800 per square foot based on the net lettable area of 91,238 square feet. The property is being marketed jointly by Cushman & Wakefield and CBRE and interested parties have until July 18th to submit their bids through an Expression of Interest.
It is worth noting that this sale comes less than three years after the family office acquired the property in December 2021 for $269.7 million, or $2,925 per square foot on the net lettable area. At the time, this acquisition was considered to be the family office’s first direct real estate investment in Singapore.
The 14-storey commercial building on Robinson Road consists of a ground floor F&B unit and office spaces on the second to 14th floors, with a total net lettable area of 91,238 square feet. In a press release by Cushman & Wakefield and CBRE on June 12th, it was mentioned that the property recently underwent a major refurbishment that was completed in the third quarter of 2023. The asset enhancement initiatives included a revamp of the street level facade, the five-footway, the main entrance, and retail space on the ground floor lobby, as well as renovations of the common areas such as office lift lobbies, toilets, and the addition of a nursing room. Additionally, the building received a BCA Green Mark Platinum Super Low Energy rating, and the refurbishments also included state-of-the-art end-of-trip facilities such as bike racks and shower facilities, as well as an upgrade to the existing air-conditioning system.
Using EdgeProp’s analytics tool, Landlens, the latest commercial transactions around 112 Robinson can be displayed. The property has been highly sought after by investors due to its freehold status and prime location in the tightly held Tanjong Pagar/Robinson Road precinct. With the recent refurbishments and almost full occupancy, the building has proven to be highly attractive to tenants.
According to Shaun Poh, executive director of capital markets at Cushman & Wakefield, this property presents a rare opportunity for investors to acquire an institutional grade office asset in the CBD. Additionally, the well-staggered lease expiry profile and 33-meter frontage along Robinson Road make the property an ideal investment for those looking for branding and signage opportunities. Poh also mentions that the increasing demand for office space in the CBD is expected to lead to upward rental reversions and contribute to the growth of the Singapore office market.
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Michael Tay, head of capital markets at CBRE, adds that Singapore’s prime office market is expected to outperform over the next few years due to the tightening of new supply in the CBD. He also mentions that the government’s initiatives for decentralization and the potential for alternative uses within the CBD, such as residential, hotel, and retail, may have a positive impact on office rents and capital values in the longer term. Despite the challenges faced by office demand in other regions, the office market in Singapore has remained resilient as shown by the continuous increase in prime office rents over the past 12 quarters.
Using EdgeProp’s Market Trends tool, it can be observed that office rents in District 1 have been on a steady incline, further showcasing the strength and resilience of the sector. With the promising outlook for the Singapore office market, the sale of 112 Robinson presents a valuable opportunity for investors to capitalize on the potential for long-term growth and stable returns.