The Buyer is from South Korea and the commercial deal is believe to be around $2 billion
The National Pension Service (NPS) from South Korea is expected to acquire Frasers Tower which is located in the Central Business District of Singapore.
Experts who have been watching the development closely said that NPS has been conducting exclusive diligence over the past few months and they have plans to acquire 50% stake in the top Grade-A specification office tower that stands 38-storey tall along the Cecil Street.
There is news report that a deal is in the horizon and this will mark NPS’ first real estate acquisition in Singapore.
The buzz in the market suggests that the deal would be around the S$2 billion mark or roughly S$2,900 psf with respect to the NLA (net lettable area).
It is also being suggested that the deal with be complex yet structured arrangement. Frasers Property, the developers of the building are likely to remain in the role of managing the asset.
The Frasers Tower, which was completed in 2018, has approximately 663,000 sq ft net lettable area of office space and another 22,000 sq ft retail component.
DP Architects had designed the tower and together the property comprises a large office tower alongside a 3-storey cascading retail component that has a roof garden.
There is also a restaurant and a park with 3-level basement car park. The building has a BCA Green Mark Platinum rating from the Building and Construction Authority.
Total, the energy giant from France and Microsoft are among the anchor tenants at this office tower.
Other tenants include The Executive Centre, the serviced office provider, Fonterra, Pacific Life and Sumitomo Corporation.
It is being suggested that JLL and CBRE which are the joint marketing leasing agents for Frasers Tower have been actively involved in the investments from National Pension Service from South Korea.
The office space in this building is spread over 32 floors starts from Level 5. All the floors in this tower barring one has a floor area ranging between 19,400 sq ft and 21,800 sq ft.
The 38th level of the tower has floor area for office use of 10,000 sq ft. There is a sky garden at the top that offers magnificent view of the city.
It must be mentioned that Frasers Property had earlier raised a loan amount of S$1.2 billion in a secured green loan from a syndicate during the development phase of the property.
Hyundai Engineering & Construction Co has been awarded the main contract for the construction for S$287 million.
Frasers Property had acquired the 99-year leasehold site for S$924 million or approximately S$1,112 psf ppr.