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Negotiations are on-going for the potential sale of Twenty Anson office tower near Tanjong Pagar MRT station for more than S$400 million, with CapitaCommercial Trust (CCT) as the potential buyer.
According to a report by The Business Times, the 20-storey building is being sold by LaSalle Investment Management Asia Opportunity III fund. The price tag involved for the site works out to around S$2,120 psf of net lettable area (NLA) without income support, which would translate to around S$430 million.
A Platinum LEED certified building; Twenty Anson has a remaining leasehold period of 95 years with a total NLA of approximately 202,700 sq ft and gross floor area (GFA) of 13,000 sq ft.
Several market watchers said the deal, if successful, will be the first transaction of a new Grade A office building that does not involve a related party transaction in nearly four years, after the 71 Robinson Road deal.
The report said that most of the current leases at the tower started in 2010 with renewals expected between 2013 and 2014. It also offers upside income potential from lease renewals, with Toyota, Getco Asia and Blackrockm among its tenants.
Based on the property’s existing leases, market watchers noted that current average monthly rental from the office tower could be approximately S$6.50 psf a month, which is lower compared to the current market rental rate of S$8 psf for a Grade A building in the area.
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