Ending months of speculation, Arch Capital Management based out of Hong Kong has acquired Anson House for a sum of S$210 million.
The fund house has paid at the rate of S$2,435 psf for the 13-storey building based upon its Net Lettable Area of 86,239 square feet.
There have been reports doing the round since June about Arch Capital Management carrying out exclusive due diligence to acquire this commercial property.
The seller is Savills Investment Management and they were previously known as SEB Asset Management.
There is news going around in the market that Arch Capital has acquired this property on behalf of a Germany based fund.
This property was jointly marketed by Savills Singapore and CBRE and they had launched an EOI exercise few months back.
It is being reported that Arch Capital had been introduced to Savills IM by CBRE.
The office tower is situated along Bernam Street- Anson Road intersection and in all covers an area of 17,035 square feet.
A little more than 76 years is remaining on its 99-year lease tenure which shall expire in March 2096.
This site is a short walk from the Tanjong Pagar MRT Station.
Anson House had been developed under a joint collaboration between S P Tao, the former chairman of Singapore Land and Mackmoor Pte Ltd, his Indonesian partner.
It was completed around two decades back when they had acquired this site paying $560 psf ppr in a state tender totalling S$53.38 million.
Among the current tenants at Anson House are United Technologies International Corporation-Asia and steel major ArcelorMittal.
There are 10 office levels in the building from Level 4 to 13. There are three retail units in the ground floor while level 2 and 3 house a car park that can lodge 54 cars.
Level 4 was developed as a car park but it was transformed into office space a year back.
Under the revamp exercise the lobby was also redesigned and ground floor units along with pantries, toilets and the corridor also underwent major revamp.
According to media reports the building currently has about 80% occupancy and the average monthly rental taking into consideration the current lease agreement is little over S$7 per square foot.
Interestingly, Anson House was the last remaining asset for Savills IM in Singapore.
After the acquisition the business of both the firms were combined and it rebranded itself as Savills IM.
There have been several office transactions in the recent months. Commerz Real had recently divested 71 Robinson Road.
This was being managed by hausInvest, its open-ended property fund.
Sun Venture Group bought this property for S$655 million, paying S$2,756 psf for its net lettable area.
It one of the biggest deals so far Gaw Capital Partners and Allianz Real Estate had acquired these assets.
According to Savills Singapore that has been keeping track of office transactions S$5.43 billion worth of properties have changed hands so far for office buildings that are S$10 million and above.
This is more than the S$5.24 billion worth of transactions last year and is expected to surpass the S$7.5 billion transactions recorded in 2017.