Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}
55 Market Street 55 Market Street

Stories

55 Market Street

01 Project Details

Address 55 Market Street, Singapore 048941
Property type Office
GFA (sqm) 83,173
Seller AEW
Buyer                      Kajima
Deal Structure 100% interest

02 The Challenge

The property had been marketed by other consultancies before Cushman & Wakefield (C&W) was appointed. However, market interest had not been very strong, primarily due to the initial high asking price.

Despite its freehold tenure and excellent location within Raffles Place, the property did have a few challenges. The low occupancy rate had been a key concern, with only around 10% of the building being leased out. The initial asking price also included all lift lobbies, restroom facilities , and a sky terrace area in the net lettable area calculation, and this faced resistance from prospective buyers. Finally, the absence of carparking in the property was a source of inconvenience for tenants. 

03 The Solution

C&W’s Capital Markets team’s recent track record of transacting CBD office buildings has allowed the team to build an extensive network of potential buyers actively looking to deploy funds in Singapore’s CBD property assets. Before the Expression of Interest (EOI) was issued, C&W approached a targeted group of active buyers through a soft marketing campaign, successfully finding the eventual buyer. Throughout the due diligence exercise, the Capital Markets team provided research and analytical support to guide the purchaser on the market outlook, and pathways to achieve target returns. In this way the team was able to help the buyer in overcoming the key challenges, including the occupancy rate, the lack of carparking, and some site technical issues.

04 The Result

The client has been delighted that C&W has successfully achieved an expeditious closing, even before launching the proposed EOI exercise. This was made possible due to C&W’s strong network and insights on the active market players readily looking to deploy fund in such an asset. The sale price achieved for 55 Market Street is one of the highest per square foot rates recorded in Singapore’s history. The speedy and low profile off-market transaction also helped to reduce “market noise” and saved valuable time for AEW, in turn enhancing their IRR.

This transaction marks C&W Capital Markets team’s fourth major Singapore CBD office transaction. A total transaction volume of close to $1.2 billion in just nine months makes the team the top Capital Markets broker in Singapore, with the highest number of CBD commercial buildings transacted in the last 12 months.

Meet the Team

Shuan Poh
Shaun Poh

Executive Director, Head of Capital Markets
Singapore, Singapore


Download VCard

Sim-Chee-Jin_Headshot_SG
Chee Jin Sim

Senior Director
Singapore, Singapore


+65 62320887

Download VCard

WE’RE ON HAND TO HELP

Contact us to discuss how our experience on this project could be translated to your business requirements.

 

 


Related Stories

Pacific International Lines (PIL) Building
Pacific International Lines (PIL) • Office
Learn More
112 Robinsons 750px x 456px
Robinson 112 • Office
Learn More
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS