Am Alpha Sell Office Building 112 Robinson
A prime freehold office building in the Central Business District (CBD) of Singapore, 112 Robinson, is now up for sale for $346.7 million or approximately $3,800 per square foot (psf) according to a reliable source. The property, which has a net lettable area of 91,238 square feet, is being jointly marketed by Cushman & Wakefield and CBRE. Interested buyers can submit their bids through an Expression of Interest until July 18.
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This divestment comes just three years after Munich-based family office AM alpha acquired the property for $269.7 million, or $2,925 psf, in December 2021. It was their first direct real estate acquisition in Singapore at the time. 112 Robinson, a 14-storey commercial building along Robinson Road, consists of an F&B unit on the ground floor and office spaces on the second to 14th floors.
The property recently underwent a major refurbishment, completed in third quarter of 2023. The asset enhancement initiatives (AEI) included a revamp of the street-level facade, five-footway, main entrance, and ground floor retail space. The common areas such as office lift lobbies, toilets, and a nursing room were also refurbished. Additionally, the building has a BCA Green Mark Platinum Super Low Energy rating and features end-of-trip facilities such as bike racks and shower facilities.
According to Shaun Poh, executive director of capital markets at Cushman & Wakefield, 112 Robinson presents a highly sought-after opportunity to acquire a freehold institutional-grade office asset in the tightly held Tanjong Pagar/Robinson Road precinct. The recent refurbishment has given the property a fresh look, and its almost full occupancy reflects its appeal to tenants. The property has a 90% occupancy rate and boasts 33 meters of frontage along Robinson Road, offering branding and signage opportunities for potential buyers.
Michael Tay, head of capital markets at CBRE, adds that the well-staggered lease expiry profile at 112 Robinson puts the incoming investor in a good position to benefit from upward rental reversions and capitalize on the strong performance of the Singapore office market. Tay also notes that the tightening of new supply in the CBD, coupled with the government’s initiatives for decentralization and increasing alternative uses within the area, such as residential, hotel, and retail, are expected to have a positive impact on office rents and capital values in the long run.
Despite the challenges faced by office demand in other regions, the office market in Singapore has remained resilient. In fact, prime office rents have seen a steady increase over the past 12 consecutive quarters, demonstrating the strength of the sector. This presents an opportunity for AM alpha to make a timing-driven, value-added play with this divestment. Interested buyers should take note of the strong potential for growth in this prime office building in the heart of the CBD.