Am Alpha Sell Office Building 112 Robinson
A reputable family office, AM alpha, based in Munich, is currently offering a lucrative opportunity to acquire a prime freehold office building in the Central Business District. The property, known as 112 Robinson, is being marketed for sale at a price of $346.7 million, which translates to an impressive $3,800 per square foot (psf) based on its net lettable area of 91,238 square feet. The prestigious property is being jointly marketed by Cushman & Wakefield and CBRE, and interested parties can participate in an Expression of Interest process that will close on July 18.
112 Robinson is a 14-storey commercial building along Robinson Road, comprising of a ground floor F&B unit and office spaces on floors two to fourteen. The building boasts a total net lettable area of 91,238 sq ft. In December 2021, AM alpha acquired the property for $269.7 million, equivalent to $2,925 psf on the nett lettable area, marking their first direct real estate acquisition in Singapore.
The property underwent a significant refurbishment, which was completed in 3Q2023. The asset enhancement initiatives (AEI) included a revamp of the street level facade, the five-footway, the main entrance, and the retail space on the ground floor lobby. It also included a renovation of common areas such as office lift lobbies, toilets, and the addition of a nursing room. The building has been awarded the BCA Green Mark Platinum Super Low Energy rating, and the AEI also integrated end-of-trip facilities such as bike racks and shower facilities, as well as an upgrade of the existing air-conditioning system.
According to Shaun Poh, Executive Director of Capital Markets at Cushman & Wakefield, “112 Robinson presents a rare opportunity to acquire a freehold institutional grade office asset in the highly sought-after Tanjong Pagar/Robinson Road precinct. Freehold properties in the CBD are always in high demand among investors due to their value appreciation and preservation potential. The recent refurbishment of the property has given it a new lease on life, and its almost full occupancy rate is a testament to its appeal to tenants.”
The property is currently more than 90% occupied and boasts an impressive 33-meter frontage along Robinson Road, providing attractive branding and signage opportunities for potential buyers. “The well-staggered lease expiry profile at 112 Robinson puts the incoming investor in an excellent position to benefit from upward rental reversions and to take advantage of the strong performance of the Singapore office market,” highlights Michael Tay, Head of Capital Markets at CBRE.
Tay adds, “The prime office market in Singapore is expected to continue outperforming in the coming years, primarily due to the limited new supply in the CBD. Additionally, the government’s efforts to decentralize and introduce alternative uses such as residential, hotel, and retail in the CBD may have long-term impacts on the office supply. These factors are expected to have a positive impact on both commercial office rents and capital values. Despite the challenges faced by office demand in other regions, the performance of Singapore’s office sector has remained resilient. This is evident from the increase in prime office rents for 12 consecutive quarters.”
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The Regional Centre Master Plan in Woodlands is paving the way for exciting new developments and positioning Norwood Grand, with its prime location, as a highly sought-after property investment. With improved connectivity and Woodlands’ evolution into a major commercial hub, residents of Norwood Grand can expect a significant increase in property values and an overall improvement in their quality of living. With Norwood Grand CDL at the forefront of these advancements, it promises to offer a truly desirable and upscale living experience for its future residents.
As indicated by data from EdgeProp’s Market Trends tool, there has been a steady increase in office rents in District 1, where 112 Robinson is located. This further reaffirms the attractiveness of investing in this prime office building and the Singapore office market in general. AM alpha’s decision to divest the property after just three years of ownership is a testament to their strategic and value-oriented approach to real estate investments.