Monday, November 21, 2011

What is Kepland up to?

What is Kepland up to?

First, they sold OFC to KReit-Asia.
Now they are selling Robinson Centre housed under Alpha  Core Real Estate Fund, managed by Keppel Land unit, AIP ( Alpha Investment Partners).
Alpha bought Robinson Centre for $145 million in 2006 from GuocoLand.
According to BT, they are selling it to  a Taiwanese investor for nearly SGD 300 m ( $2,240 psf NLA).

The price being paid by the Taiwanese party set to buy Robinson Centre is thought to reflect a net yield in the region of 3.5 per cent, based on the building's current rental income stream. The prospective buyer is looking at Robinson Centre as an investment - that is, with a view to collecting rental income from it - rather than for redevelopment, BT understands.
Robinson Centre was completed about 11 years ago. Investment sales of office blocks have gathered momentum since last month, say market watchers.

KReit-Asia is paying $2,380 psf net of rental support, for OFC.

Question is:
What is Kepland up to?
Is there an impending buying opportunity coming up?

Other Big Q is:
Why are all the Institutional Investors snapping up the Office Towers now?
If U read the Research reports by  local Equity Analysts and Property Analysts, Office Properties are facing a downturn. But, the smart money seems to think otherwise.

....last month, Royal Group Pte Ltd, controlled by Asok Kumar Hiranandani and his son Bobby, acquired two adjacent 999-year leasehold office blocks at Phillip Street in the Raffles Place area for a total of about $283 million, or an average price of $2,350 psf. One Phillip Street was sold for $2,050 psf and Commerce Point (at 3 Phillip Street) at $2,490 psf.

Another deal last month involved the sale of a 50 per cent stake in a company whose sole asset is the 12-storey freehold Finexis Building, a smallish office block at 108 Robinson Road.
The transaction was based on the office block's latest valuation - in July - of $110 million or about $2,043 per square foot on its total strata area of 53,830 sq ft, which is understood to be close to the building's net lettable area.

Go figure.

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