Am Alpha Sell Office Building 112 Robinson
AM alpha, a family office based in Munich, is currently seeking to sell 112 Robinson, a prime freehold office building located in the Central Business District. According to a reliable source, the property is being put on the market for $346.7 million, which translates to about $3,800 per square foot based on the net lettable area of 91,238 square feet. Cushman & Wakefield and CBRE are jointly handling the sale of the building, and the Expression of Interest will close on July 18.
The decision to divest the office building comes less than three years after its acquisition by the family office for $269.7 million in December 2021. At that time, it was their first direct real estate investment in Singapore.
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The 14-storey commercial building, situated along Robinson Road, comprises an F&B unit on the ground floor and office spaces on the second to 14th floors. It boasts a total net lettable area of 91,238 square feet. Back in June 12, a press release issued jointly by Cushman & Wakefield and CBRE mentioned that the property had undergone a major refurbishment, which was completed in the third quarter of 2023. The asset enhancement initiatives included a revamp of the street level facade, the five-footway, the main entrance, and the retail space in the ground floor lobby. Additionally, the common areas such as office lift lobbies, toilets, and a nursing room were also refurbished.
The property has received a BCA Green Mark Platinum Super Low Energy rating, with the asset enhancement works incorporating end-of-trip facilities like bike racks and shower facilities, along with the upgrading of the existing air-conditioning system.
Using EdgeProp’s analytics tool, Landlens, the latest commercial transactions around 112 Robinson can be seen in the map below.
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 assets in the CBD are highly coveted by investors for their value appreciation and preservation. The refurbishment has given the property a new lease of life, and its almost full occupancy is a testament to its appeal to tenants.”
With over 90% occupancy, the building offers branding and signage opportunities for potential buyers with its 33-metre frontage along Robinson Road. “The incoming investor is well-positioned to take advantage of the upward rental reversions and benefit from the strong performance of the Singapore office market, thanks to the well-staggered lease expiry profile at 112 Robinson,” says Michael Tay, Head of Capital Markets at CBRE.
Tay adds, “The prime office market in Singapore is expected to outperform in the coming years due to the tightening of new supply in the CBD. The Government’s efforts to decentralize and increase alternative uses within the CBD, such as residential, hotel, and retail, may also have a long-term impact on office supply. These factors are expected to have a positive effect on commercial office rents and capital values, and despite challenges faced by office demand in other regions, Singapore’s office market has shown resilience. The continuous increase in prime office rents over the last 12 consecutive quarters is a testament to this resilience.”
Using EdgeProp’s Market Trends tool, the office rents in District 1 can be observed in the graph below.
In conclusion, AM alpha’s timing-driven and value-add real estate strategy is evident in the sale of 112 Robinson, which highlights their investment approach and their ability to capitalize on market conditions.