Neptune Orient Lines building sold for S$380m

Neptune Orient Lines has sold its head office, the NOL Building at 456 Alexandra Road, to the Fragrance Group for S$380 million.

It is the largest sale of a decentralised single commercial asset in Singapore this year, said Jones Lang LaSalle which brokered the sale to Fragrance Regal Pte Ltd.

NOL said in a statement to Singapore Exchange the divestment will enable it to “release capital for strategic investment.”

The shipping company will take a short term leaseback of the building up to the end of June 2014.

The sale price represents S$1,381 psf on current Net Lettable Area, according to Jones Lang LaSalle.

The site has a “commercial” zoning and the permitted plot ratio for the area is 2.80.

Separately, NOL announced a net profit for the September quarter of S$61 million (US$50 million), against a loss of S$111 million a year earlier.

It said it expects to post a full year loss in the face of weak economic conditions, excess shipping capacity and high fuel prices.

Source : Channel NewsAsia – 25 Oct 2012

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