K-Reit said to be buying space at about $1,550 psf of net lettable area.
IN a deal that could help benchmark office values in the Raffles Place area and smooth the way for more office investment transactions, a property fund is said to be selling six floors at Prudential Tower for about $1,550 per square foot or about slightly over $100 million.
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| Back in the fold: KepLand group is buying back the property at a lower price than what it sold the space for 13 years ago — FILE PHOTO |
The buyer in the deal being stitched together is believed to be listed K-Reit Asia, which already owns 44.4 per cent of the strata area in the 30-storey building at the corner of Church and Cecil streets.
Prudential Tower is on a site with a remaining lease of about 85 years. Jones Lang LaSalle is said to be brokering the latest sale involving net lettable area (NLA) of about 67,000 sq ft.
As at the end of last year, K-Reit’s existing space at Prudential Tower was valued at $224 million, or $2,066 psf based on 108,436 sq ft NLA.
So the price of $1,550 psf that K-Reit is expected to pay for its latest acquisition of six floors is about 25 per cent lower than the end-2008 valuation on its existing space.
Some market watchers described the latest pricing as ‘not unreasonable’. Continue reading
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