In another development British property group Chelsfield and ARA Asset Management are inching closer towards a tie-up by the end of January.
They are set to acquire 51 Bras Basah Road Manulife Centre for a sum of S$556 million that would translate to around S$2,300 psf for the eleven-storey commercial property.
It has 242,000 sq ft net lettable area and also has 96 years of its lease tenure remaining. This property is being sold by Alpha Asia Macro Trends Fund II which is managed by City Developments and Alpha Investment Partners.
It is interesting to note that Manulife Singapore’s lease in this property expires in the near future. It is an anchor tenant has leased 100,000 sq ft which is almost half of the office space in this property.
This presents great opportunity for the new owners to go for a makeover of the property and increase its rental yield. Given its attractive location with two MRT Stations in the vicinity – Bras Basah (Circle Line) and Bencoolen (Downtown Line)
At present this building houses retail spaces at the street level and offices above but realty analysts feel that having retail space on Level 2 and 3 can increase rental yield for this property as yield from retail stores tend to higher when compared offices.
Also doing away with unused car parks can help in increasing the lettable area. What would definitely work as an advantage for the new buyers is the upward trend in office rental market and when they sign fresh lease agreements they’d definitely look to capitalize on the increased demand.
In related development a fund managed by one of Kenedix Inc.’s subsidiary recently bought 25% share in Church Street’s Capital Square.
They acquired this stake from ARA Asset Management managed fund at S$270 million. There is 388,118 sq ft of leasable area ion this building and 77 years of lease tenure remains for the property.