Thong Sia Building sold for S$380m
A DEAL is understood to have been inked for the collective sale of Thong Sia Building along Bideford Road for about S$380 ·million.
The buyer of the 26-sto’rey freehold property is believed to be Sin Capital Partners.
The en bloc sale has secured approval from owners controlling more than 80 per cent of share values and strata area in the mixed development. However, as unanimous approval from owners has not been secured, the transaction will be subject to approval from the Strata Titles Boards.
The S$380 million price works out to S$2,431 per square foot (psf) over the building’s existing gross floor area (GFA) of about 156,300 sq ft. A new development’ on the site will be allowed to retain this GF A, which is 7.236 times the land area of 21,600 sq ft. This surpasses the “4.9+” plot ratio indicated for the commercial and residential zoned site in Urban Redevelopment Authority’s Master Plan 2014.
JLL marketed the collective sale of Thong Sia Building. The property was offered for sale via two tender exercises; the first closed in January this year and the second in May.
While the process is said to have drawn interested parties, their offers did not meet the minimum S$400 million reserve· price that Thong Sia Building’s majority owners had stipulated for the collective sale. The owners lowered their minimum price to S$ 380 million and the deal with Sin Capital was sealed during the 10-week private treaty period following the close of the. second tender exercise.
Thong Sia Building comprises seven levels of commercial space and a 19-storey residential tower of 3 7 apartments.
Sin Capital is expected to redevelop the District 9 property, which is opposite The Paragon.
Early last year, an offshore fund managed by the Singapore-based private investment group bought a half-stake in Finexis Building at 108 Robinson Road; that transaction valued the 12-storey freehold office block at S$ l 2 3 .8 million. This worked out to nearly S$2,300 psf on the building’s strata area of 53,830 sq ft, which is close to its total net lettable area.
In late 2011, another Sin Capital-managed offshore fund acquired the other 50 per cent in Finexis Building. That deal valued the property at S$110 million, or S$2,043 psf on strata area.