By Cheryl Tay
Guthrie GTS, an investment holding company in Singapore, and Sun Venture, a Singapore-based real estate investment company, are continuing to tap the strata commercial property market.
The Guthrie-Sun Venture tie-up acquired all 66 Burlington Square (pictured) office units from a Wing Tai-City Developments Ltd venture for a total price of around S$89.3 million, approximately S$1,318 psf of strata area.
However, the two companies have said that they are open to selling the units if there is an attractive offer.
“But for now, our priority is to take an active role in the MCST (management corporation strata title) by getting elected to the management council to see how we can enhance the value of our units,” said Michael Leong, Executive Director of Guthrie GTS, told The Business Times.
“If we wish to do any asset enhancement works on our units, it may concern the common property and we’ll need the cooperation of other owners.”
The report noted that nearly 90 percent of the 66 strata offices are currently leased. Leong said that net yield on the acquisition price ranges between 3.5 and four percent, based on the current rental income of the units.
Located on the fifth to 12 floors of the mixed development, the office units represent 35.4 percent of total share values. The deal, which was brokered by CBRE, was conducted through an expression of interest (EOI) exercise which closed on 18 April 2012.