Anson House, an office tower located close to the Tanjong Pagar MRT Station will hit the market very soon.
The 13-storey building which houses several offices has changed hands many times. It has already hired marketing agents for the sale and they are expecting offers around the S$218 million mark.
This would translate into a price of about S$2,500 psf for the building where the NLA (net lettable area) was very recently expanded.
The estimated price works out to be around 2% of the current rental yield. The building enjoys near 80% occupancy.
Taking into account the present leases in the building the average monthly rental sits at around the mid mid-S$7 psf mark.
The building is currently owned by a fund that is managed by Savills Investment Management which known by the name of SEB Asset Management in past.
It is located at the junction of Bernam Street and Anson Road. Savills Singapore and CBRE the two leading property consultant groups have been hired as the marketing agents for this sale.
They would seek EOI (expression of interest) and launch this property after the end of Chinese New Year around the latter half of March.
The commercial property currently has 10 office floors that occupy levels 4 to 13.
There are three retail stores in the ground floor and the rest of the area including Level 2 and 3 houses a car park that can accommodate 54 cars.
Up until last year Level 4 of the building also used to be a car park and it was converted into office space and which increased the net lettable areas of the building to about 87,000 sq ft.
As a part of the renovation project undertaken the lobby was completely revamped. The revamp project also extended to the toilets, the retail areas in the ground floor and the corridors in the building.
The 17,035 sq ft Anson House has a 99-year lease term with the current term slated to expire in month March 2096 which offers almost a 77-year period left on its lease tenure.
As per the 2014 Master Plan of the Urban Redevelopment Authority the site has been zoned for commercial use.
The maximum gross plot ratio for this property is 5.6+ which should be an attraction for the potential buyer.
Market analysts feel that Twenty Anson which was sold last year would serve as a great pricing reference point when it comes to Anson House.
Twenty Anson was bought by AEW from its previous owner CapitaLand Commercial Trust for S$516 million.
The price translated to S$2,503 on its net lettable area. The price was 2.7% of the rental yield of the property. During its sale there was 88 years remaining on the lease tenure for the property.
Among the major tenants at Anson House are United Technologies International Corporation-Asia and steel major ArcelorMittal.
The incoming buyers would also count on the potential presented by unoccupied office spaces in the property.
The office rental market is on an upside in Singapore. The property is also likely to attract owner occupiers who can move their offices into the vacant spaces and enjoy rental income from rest of the property.
The location is a vibrant business community and has come a long way since the time when it was seen as one of the ends of CBD.
Its close proximity to upcoming Greater Southern Waterfront area would also serve as a great incentive for the buyer.
Once the upcoming Prince Edward Road and Shenton Way MRT Stations are completed it will boost connectivity to this site.
Anson House has seen a long history of changing hands. SEB the current owners had acquired Anson House in 2014 from CBRE Global Investors (formerly known as ING Real Estate) for S$172 million.
ING Real Estate had acquired the same property in 2011 for S$148 million from an HNI investor.
The HNI investor had acquired this for S$85 million from Australia’s Macquarie Bank managed fund in 2009.
Interestingly the deal was a loss for Macquarie as they had acquired the property for S$129.5 million in 2007 from GE Real Estate.
The year before GE Real Estate took hold of the office tower for S$75 million. They had bought it from a JV between Mackmoor Pte Ltd from Indonesia and S P Tao, former chairman of Singapore Land.
Anson House was jointly developed by Mackmoor and Mr Tao over a site they had bought from Urban Redevelopment Authority back in 1996 through a tender and paid S$53.38 million at $560 psf ppr.