79
Anson Rd stake sold for 3rd time in 2 years
SEB Asian Property Fund pays $215m for 55% stake
January
25, 2008
TRADING
office buildings continues to be flavour of the month in the real
estate market. A 55 per cent stake in the freehold 79 Anson Road has
changed hands for the third time in about two years. The latest deal
involves a fund managed by Ferrell Asset Management selling the space
to an SEB Asset Management fund for $215 million.
Ferrell's fund, FAM Maximilian Real Estate Investment Fund, last year
bought the space - spread over 12 floors of the 23-storey building,
for $149 million from two parties, at least one of which is linked
to the Lippo group. Pramerica Asia had sold the property to Lippo
entities for over $90 million in early 2006. The latest acquisition,
by SEB Asian Property Fund SICAV-FIS, for $215 million works out to
about $1,937 per square foot based on a lettable area of 110,976 sq
ft.
The
fund, which was launched in late-August last year, invests in Asia
only. The plan is to develop a broad-based portfolio, primarily in
China, Japan, South Korea and Singapore, over the coming months. This
is not the German group's first acquisition in the Singapore office
sector. It made at least two purchases last year.
In
September, SEB bought 12 floors at Springleaf Tower nearby for $2,088
psf of net lettable area. And a few months before that, in April,
the group bought SIA Building for about $526 million or $1,783 psf
from TSO Investment, a fully owned subsidiary of a property fund managed
by CLSA Capital Partners.
TSO had purchased the office block from Singapore Airlines in June
2006 for $343.88 million, or about $1,165 psf. A
Ferrell-SEB joint release yesterday said the space transacted at 79
Anson Road is currently about 98 per cent occupied. Major tenants
include Kellogg Brown & Root, Mitsubishi Chemicals, interTouch
and Infor Global Solutions. Ferrell
Group managing director David Lee said the group will keep searching
for development and investment opportunities in the commercial property
sector. SEB
Immobilien-Investment managing director Choy-Soon Chua said the group
expects to capitalise on the 'extremely positive growth prospects'
in the Singapore office sector due to rising demand and limited supply.
The
remaining 45 per cent of 79 Anson Road is owned by the Central Provident
Fund Board.
