71 Robinson Road is all set to change hands and a sale is in the works for this 15-storey office block.
It has been reported in the media that Sun Venture, the property investment group is busy conducting exclusive due diligence, for which it has been granted the rights with the aim to purchase this office property.
It is being estimated that the price for this acquisition would be around S$2,800 psf for the NLA (Net Lettable Area) of 237,644 sq ft and this would translate into a price tag of S$660 million for the office block.
This price reflects around 3.5% net yield considering the income from the current leases in the building.
The office property currently enjoys 100% occupancy with S$10 psf rent per month. Among the existing tenants at this office block include Visa, CommerzBank, WeWork and Ogilvy.
The commercial site is located at the intersection of Robinson Road and McCallum with 74 years remaining in its lease tenure. It was completed 11 years back and has been built as per Grade-A specifications.
The owners of the commercial property, Commerz Real has appointed JLL and CBRE as the marketing agent for the sale earlier in the year.
According to people aware of the developments the agents had contacted a small list of potential buyers and launched an Expression of Interest exercise without any fanfare which ended in May.
The small group of shortlisted buyers had been asked to work on their bids and come up with a final offer by last month and this finally led to the selection of Sun Venture which has entered into contract exclusive due diligence.