3 Office Floors & 4- level Retail Podium Asking Price at S$480 million
Three lowest level office floors along with four-level retail podium at the AEW 30 Raffles Place have hit the market via an EOI (Expression of Interest) exercise.
The three office floors that have been classified for banking use are in a site that was earlier known as Chevron House.
The 32-storey commercial property is currently undergoing an extensive S$110 million revamp according to reports in the media.
As part of the revamp, a part of the Basement 2 would be converted for retail use from the current carpark.
Basement 3 and remaining part of the Basement 2 shall continue to serve as place for car parking.
There are reports in the media that the indicative price for the banking hall and the retail podium is S$480 million of which S$300 million is for the retail space (approximately S$5,800 psf on the net lettable area) and S$180 (approximately S$3,100 psf) million for the banking hall.
The office space occupies Levels 3, 4 and 5 in the tower. Interested bidders may bid for the retail and office component together or for either of them.
30 Raffles Place sits next to the Raffles Place MRT Station and the 99-year lease tenure for the property began in 1989 and there is little more than 69 years left on this tenure.
This divestment clause was a part of the agreement signed between Oxley Holdings that sold this building in April this year to AEW the property fund manager from United States. The S$1.025 billion deal was inked under the sale and purchase agreement.
Oxley Holdings in a statement has said that it is committed towards divesting the banking and retail space as soon as it is conducive taking the market conditions into mind.
It expects to wind up this sale before the property is finally handed over to AEW which is expected to take place by Q1, 2020.
As far as the refurbishment work on the building is concerned Oxley plans to complete this by the first quarter of next year.
As part of the sale and purchase agreement, the first completion was executed on June 7, 2019.
In this 82.35% of Oxley Beryl’ issued as well as paid-up capital was transferred to Golden Compass (BVI), the vehicle used by AEW to buy 30 Raffles Place.
JLL and Cushman & Wakefield that have been tasked with conducting the EOI exercise are marketing the sale quietly in front of a small group of potential buyers and expected to finish this by this month’s end.
The retail podiums which are in Basement 1 and 2 consist of 79 units and together have net lettable area of 51,400 sq ft and 61,500 sq ft strata area.
It is being reported in the media that some tenants have already been secured and a health/fitness business is all set to take up Basement 2.
The retail podium would see a name change after completion of the refurbishment work and be known by the new name of Change Alley Mall.
The investor would be able to earn revenues from the media screen as well as event space apart from the rentals at this new mall.
The three levels housing the banking gall have almost identical strata area of approximately 58,300 sq ft.
Among the remaining 27 levels that stand above negotiations are going on and co-working space operator WeWork is all set to take nine levels.
Once the refurbishment is complete the net lettable area of the property shall increase to 363,000 sq ft from the existing 261,300 sq ft which is nearly 40% upside.