Pacific International Lines
01 Project Details
|Address||140 Cecil Street, PIL Building, Singapore 069540|
|Seller||Pacific International Lines (PIL)|
|Buyer||TE Capital and Lasalle Investment Management (LIM)|
|Deal Structure||100% interest|
02 The Challenge
The property sits on a predominantly freehold land plot, together with two smaller 99-year leasehold land plots, with a total site area of approximately 19,503 sq ft (1,812 sq m). The site area is just shy of the 2,000 sq m requirement for an intermediate building to qualify for the CBD incentive (CBDI) scheme. The potential buyers were concerned about differing land tenures within the development, as the possibility of the authorities agreeing to granting a lease top-up (from leasehold to freehold) for the two smaller land plots would have been an unprecedented approval.
03 The Solution
The Cushman & Wakefield (C&W) team spent a total of eight months applying to and liaising with the Urban Redevelopment Authority (URA) and the Singapore Land Authority (SLA) on the CBD incentive scheme and the lease renewal, and successfully obtained: 1) Outline Planning Permission (OPP) Approval for alternative uses; and 2) Lease upgrade for the two leasehold land plots to freehold status as an additional requirement. With these certainties, C&W conducted a two stage Expression of Interest (EOI) sale process. Each process generated strong interest with close to 10 bids.
04 The Result
C&W worked hand-in-hand with the client through the entire sale process, including the OPP and land lease renewal, and successfully divested the property at a price above the asking price.
With the divestment, the client was able to carry out their restructuring plan successfully ahead of schedule while enjoying a leaseback period on their desired terms. The purchasers were delighted that they were able to acquire a prime office asset with full freehold land tenure status and significant redevelopment potential within Singapore’s financial hub.
Meet the Team
WE’RE ON HAND TO HELP
Contact us to discuss how our experience on this project could be translated to your business requirements.