CPF building sold for $550m

Ascendas Land (Singapore) bought the CPF Building at 79 Robinson Road for $550 million, slightly above expectations, as its first office asset in Singapore.

Southernwood Property, a subsidiary firm of Ascendas Land, won the tender with the highest bid. The tender had two other bids:

  • Leapford, owned by Pacific Century Regional Developments, $538.28 million bid,
  • OUE Reef Development, $280 million.

The winning bid exceeds analysts’ expectations of $450 million.

President and group chief executive Manohar Khiatani said that Ascendas plans to redevelop the property into a grade-A office building with supporting retail components. Ascendas’ regional office portfolio includes assets in Shanghai and Seoul, The building’s current net floor area area is about 324,000 sq ft, while the new development could have a gross floor area of not exceeding 606,000 sq ft.

The Government nomally do not sells its buildings.The most recent is the current AXA Tower, just across the road from the CPF Building. It was formerly the Treasury Building and was renamed Temasek Tower when the Ministry of Finance moved out in 1997. A CapitaLand subsidiary sold the property for $1.04 billion in 2007.

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