Cross-border Capital Flow

Vol 02 | Issue 01 | Jan 2014DEALflow

A Colliers International Investment Services Bi-Annual PublicationThis publication has been prepared by Colliers International for general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this publication and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). No part of this publication should be reproduced without the permission of Colliers International. ©2014. All rights reserved.

DEALflow

Colliers International (Singapore) Pte Ltd1 Raffles Place #45-00 One Raffles Place Singapore 048616TEL 6223 2323 FAX 6222 4901CEA LICENCE NO. L3004691J

www.colliers.com

Message from the DirectorOur ViewpointMarket TransactionsOur Success StoriesNew Appointments

4

681418

Table of Contents

What it should have beenIn the Nov 2012 issue, our articles “Message from the Director” and “Collaborate to Accelerate Success”, we mentioned that Frasers Commercial Office Trust (FCT) acquired a Grade A office building in Canberra, Australia. The correct name of the Trust should be Frasers Commercial Trust (FCOT).

H ow time flies!

The excitement of holding the inaugural issue of Dealflow hot off

the press in my hands was still fresh in my mind and we have entered into a brand new year again!

Apart from the many interesting transactions that took place in 2013, it was also an eventful year for Colliers International and me.

For me, the hotel sector stole the limelight last year – with eight hotels being sold, of which one was a billion-dollar transaction! In fact, there were several billion-dollar investment deals that were concluded in 2013.

With the huge amount of institutional funds and foreign capital chasing the same few opportunities, we are facing increasing pressure to seal deals in a secure and timely manner or risk having them being snitched right under our noses.

The other highlight of the year was the landmark court cases on the collective sale of Harbour View Gardens and Thomson View.

Colliers International was highlighted in the Harbour View Gardens case as a result of our involvement in facilitating the compensation payout made by the contributing parties to one of the dissenting owners.

MESSAGE FROM THE DIRECTOR

A year of billion-dollar transactions

We are greatly enlightened by the experience and at the same time became wiser. In fact, the experience has placed us in a much better position to advise and assist our clients in their collective sale exercise.

Although the Harbour View Gardens and Thomson View cases are of different nature, the key message gathered from the court decisions was clear. Sales committees and marketing agents have to ensure and observe accountability, fairness and openness when carrying out their duty in a collective sale exercise.

Collective sales has come a long way

since 1994 and personally, I am happy that this segment is now regulated – defining the parameters and ensuring that players go by the rules.

On an end note, I would like to take this opportunity to thank you for your continued support and friendship.

Cheers to a fruitful 2014!

Tang Wei LengExecutive Director | Investment Services

6

OUR VIEWPOINT

Cross-border Capital Flow

2 013 was a sterling year for the investment sales market, with several deals setting new

records: • The largest transaction in history

(in terms of sales value) – the sale of Paragon for S$2.5 billion;

• The most expensive State land (in terms of unit land price) – the sale of a mixed commercial and residential site located at Yishun Avenue 2/Yishun Central 1 for S$1.43 billion (S$1,077 psf ppr);

• The most talked-about private deal – the sale of Grand Park Orchard Hotel and the adjoining Knightsbridge for S$1.15 billion.

We are seeing investment transactions that are in billions now.

The investment world has become smaller, as more cross-border capital flow takes investors across different regions around the globe.

Singapore is a city state with an open economy that has one of the highest per-capita income in the world. Her investment market is active, attracting a diversified pool of real estate buyers worldwide.

Last year, Blackstone, the world’s largest alternative investment firm, made its first foray into Singapore real estate with the acquisition of Starhub Green. This year, Bright Ruby Group, controlled by the Du family from China, made a big bang with their S$1.15 billion acquisition of Grand Park Orchard Hotel and Knightsbridge.

The capital flow is both ways. Singapore-based investors are also making headlines elsewhere in the world; in particular, the United States, United Kingdom and Australia.

Pontiac Land has announced its maiden overseas property investment – to develop an iconic 72-storey condominium tower next to the Museum of Modern Art in New York, with a development cost of US$1.3 million. OUE Limited bought the US Bank Tower, the tallest building west of the Mississippi, and related properties for US$367.5 million. Ho Bee acquired Rose Court, a 157,406 sq ft freehold office located at Southwark Bridge Road in Central London for £67.2 million. Chip Eng Seng bought a development site at 170 Victoria Street in Melbourne for A$32 million.

Singapore developers and investors are going places, in

search for higher yields and diversification.

Singapore is a small country with limited property investment opportunities. A significant number of buildings in Singapore are sitting on lands that were acquired via the government Sale of Sites (SOS) programme since 1967. These buildings have 99-year tenure which have clocked down. While some land owners managed to reset the tenure, the fate of others is precarious.

Generally, the government will consider granting a lease top-up in a redevelopment situation and when the existing tenure has reduced to half. Building owners will have to balance the economics of a redevelopment – including the cost of topping up and intensification, if any – with staying status quo, which might not be an option for value sustainability. On the other hand, redevelopment might not involve a lease top-up. This is demonstrated by MSO Trust’s (a joint-venture between CapitaLand, CapitaCommercial Trust and Mitsubishi Estate Asia) investment of S$1.4 billion in the redevelopment of the former Market Street Car Park into a Grade A office building – CapitaGreen.

Indeed, more developers could be inspired by MSO Trust’s stab at 6

7

rejuvenation without a lease top-up and not be held back by policies that do not immediately align with the best interest of the aging building. It certainly would not take 99 years for the developer/investor to make their return and it is also unlikely to affect their exit potential as the physical asset could be put to work appropriately to derive economic value for the remaining life of the tenure.

Over time, there will be more aging properties and developers, investors as well as building owners have to change their mindset and look at how they could optimise the remaining tenure of a building rather than letting it “rest in peace” ahead of its time. The challenge will be for aging buildings with multiple owners, as they are likely to have different risk appetites and adequate incentives would be needed to execute a collective sale.

For these aging buildings, the glory of the yesteryear government SOS programme could become the bane of urban decay or slump amidst the newer buildings that continue to be built out of the current Government Land Sale (GLS) programme.

The GLS programme will

continue to offer opportunities to developers/investors to participate and benefit in the overall planning and positioning of Singapore to become a world class city.

In this regard, the government will always be the top seller of land (or opportunities). In 2013, GLS accounted for some 32% of the total investment land sale value in Singapore.

Our well-developed real estate investment trust (reit) market offers small investors and individuals the opportunity to own a percentage share of the final product from the GLS and transact in them actively through an organised market place. In contrary, small investors and individual owners of aging buildings would have to exit through the less organised secondary market or bide their chance in a collective sale.

Reits have become a formidable buyer of investment properties, and to some sponsor-reit owners, it is a good alternative monetisation/exit option that reaches out to investors with a small appetite. Indeed, with so much supply of capital in the market, it is really a matter of organising and distributing the investment products to these investors.

In 2013, the initial public offerings (IPOs) of reit accounted for 25% of Singapore’s investment transaction value, while private investment sales made up 43%.

Increasingly, the private investment market is experiencing more capital chasing deals, with many having a similar focus and strategically chasing prime properties and core markets alike.

Interests are coming from both the larger funds and recently-liberated insurance companies from China and Taiwan in prime Grade A assets. The medium and boutique funds are all about value-add opportunities. Meanwhile, family offices, which have a real estate allocation, tend to invest through separate accounts managed by an experienced fund manager. The most interesting real estate investor would have to be the affluent Chinese who are reinvesting their wealth made in other non-real estate businesses, such as oil, gas, mining and steel. These companies tend to make direct acquisitions of hotels and strata office floors.

Undaunted by increasing interest rates, investors will continue to pool capital together in search of real estate as a stable asset class, and we will

continue to see cross-border investments – whether for higher yields or diversification.

In Singapore, we see opportunities in the following sectors:

Residential – Some downward price pressure is seen for districts 9 and 10 in the Core Central Region, as the completed supply is nearing the penalty timelines. Investors will find good value if they lower their return expectations and extend their time horizons.

Office – Inbound capital has a tendency to seek good quality office. Rents have bottomed and will start to trend upwards. Some of the inbound capital have a lower yield requirement.

Hotel – Another sweet spot for inbound capital. Affluent Chinese investors will continue to seek good quality and well-located hotels.

Aging buildings - Singapore has many interesting and well-located aging buildings that investors could consider investing in. Being a small country, the government has adopted a proactive approach towards the rejuvenation of the country. Redeveloping aging properties is certainly in alignment with the government’s objectives and when

undertaken with the right approach, it would certainly reap benefits for the developer/investor.

Finally, the direction where prices and yields are heading is really a question of demand and supply, and perhaps, substitutes/alternatives.

We are seeing more developers seeking overseas opportunities in search of better yields and diversification. But given that the markets now closely mimic one another, does diversification really offer better yields?

Given Blackstone’s foray into Singapore last year with the acquisition of Starhub Green, and Bright Ruby Group’s acquisition of Grand Park Orchard Hotel and Knightsbridge, I am sure another Black Swan will make its appearance this year and wow the market.

7

88

PROPERTY 2HR 135 Cecil Street PoMo Robinson Point HP BuildingTYPE Office Office Retail/Office Office Office/Industrial

LOCATION 2 Havelock Road 135 Cecil Street 1 Selegie Road 39 Robinson Road 450 Alexandra Road

TENURE 99 years wef from 1983 Freehold 99 years wef 17 Mar 1983 Freehold Freehold

NLA/STRATA AREA 173,912 sf 83,076 sf 177,381 sf 135,270 sf GFA - Office: 155,932 sf Manufacturing: 345,101 sf

SELLER AEW Alpha Investment Partners CLSA Capital Partners Sun Venture Hewlett-Packard

PURCHASER Guthrie GTS Tahir of Mayapada Group EH Property and Investments Pte Ltd Tuan Sing Holdings United Engineers

SALE PRICE S$282.88 mil (S$1,626 psf) S$182 mil (S$2,191 psf) S$336 mil (S$1,894 psf) S$348.9 mil (S$2,579 psf) S$402 mil (S$802 psf on GFA)

PASSING YIELD 3.2% 3.8% 4% 2.95% 3.7%

DATE TRANSACTED March 2013 May 2013 June 2013 June 2013 September 2013

2HR 135 Cecil Street PoMo Robinson Point HP Building

Properties transacted by Colliers International

MARKETTRANSACTIONSCOMMERCIALINDUSTRIAL

9

PROPERTY 2 Pioneer Sector 1 9 Kian Teck Crescent TechnoPark@Chai Chee UE Bizhub East (Industrial) Mauser SingaporeTYPE Industrial Industrial Industrial Industrial Industrial

LOCATION 2 Pioneer Sector 1 9 Kian Teck Crescent 750, 750A, 750B, 750C, 750D and 750E Chai Chee Road 6 & 8 Changi Business Park Avenue 1 81 Tuas Bay Drive

TENURE30+30 years JTC lease wef 1 October 1986

30+19 years JTC lease wef 1 August 1993 60 years HDB lease wef 1 April 1971 30+30 years wef 1 February 2008 60 years lease wef 19 July 2006

GFA 375,121 sf 58,752 sf 1,524,685 sf 611,471 sf 107,566 sf

SELLER NK Chemicals C.O.S Printers CapitaLand United Engineers Ho Lee Group

PURCHASER Soilbuild Business Space REIT Soilbuild Business Space REIT Viva Industrial Trust Viva Industrial Trust Viva Industrial Trust

SALE PRICE S$60 mil (S$160 psf) S$10.3 mil (S$175 psf) S$193 mil (S$126 psf) S$380 mil (S$621 psf) S$28 mil (S$260 psf)

PASSING YIELD Below 8% 8% NA NA NA

DATE TRANSACTED February 2013 March 2013 November 2013 November 2013 November 2013

9

9 Kian Teck Crescent

UE Bizhub East

Mauser Singapore

2 Pioneer Sector 1 TechnoPark@Chai Chee

MARKETTRANSACTIONSCOMMERCIALINDUSTRIAL

1010 Minton CourtYi Mei Garden

Kismis LodgeHua Court Ultra Mansion

Gilstead CourtChancery Garden

11

DEVELOPMENT Hua Court Ultra Mansion Kismis Lodge ESTIMATED LAND AREA 16,312 sf 45,512 sf 70,283 sf

ZONE Residential, 3-storey mixed landed Residential, plot ratio 2.8 Residential, 3-storey mixed landed

SALE PRICE S$14.5 mil S$149.13 mil S$84.18 mil

LAND PRICE S$889 psf S$1,170 psf ppr S$1,198 psf

PURCHASER Goodland Group Fantasia (Novena) Pte Ltd Newfort Alliance (Cairnhill)

BREAKEVEN S$1,100 - S$1,200 psf S$1,650 - S$1,750 psf S$1,450 - S$1,550 psf

EXPECTED SELLING PRICE S$2.7 - S$2.8 mil per cluster terrace S$1,900 - S$2,100 psf S$3.6 - S$3.8 mil per cluster terrace

DATE TRANSACTED February 2013 March 2013 March 2013

DEVELOPMENT Chancery Garden Yi Mei Garden Gilstead Court** Minton CourtESTIMATED LAND AREA 29,468 sf 78,030 sf 75,479 sf 13,271 sf

ZONE Residential, 2-storey mixed landed Residential, plot ratio 2.1 Residential, plot ratio 1.4 Residential, 3-storey mixed landed

SALE PRICE S$41 mil S$136 million S$150.2 mil S$13.4 mil

LAND PRICE S$1,391 psf S$856 psf ppr S$1,421 psf ppr S$1,010 psf

PURCHASER A Group of Private Investors Roxy-Pacific Holdings Tuan Sing Holdings Logistics Holdings Limited

BREAKEVEN S$1,650 - S$1,750 psf S$1,350 - S$1,450 psf S$2,000 - S$2,100 psf S$1,300 - S$1,400 psf

EXPECTED SELLING PRICE S$4 - S$4.5 mil per cluster terrace S$1,600 - S$1,700 psf S$2,300 - S$2,500 psf S$3.5 - S$3.8 mil per cluster terrace

DATE TRANSACTED June 2013 June 2013 June 2013 June 2013

11

RESIDENTIAL

MARKETTRANSACTIONS

**Pending High Court’s Approval

RESIDENTIAL

12

PROPERTY Berjaya Hotel IBIS Novena Rendezvous Grand Hotel Park Hotel Clarke Quay UE Bizhub East (Hotel) Park Regis Grand Park Orchard Gallery Hotel The Sentosa Resort & Spa Hotel 1929TYPE Hotel Hotel Hotel Hotel Hotel Hotel/Office Hotel Hotel Hotel Hotel

LOCATION 83 Duxton Road 6 Irrawaddy Road 9 Bras Basah Road 1 Unity St 2&4 Changi Business Park Avenue 1 23 Merchant Road 270 Orchard Road 1 Nanson Road 2 Bukit Manis Road, Sentosa 50 Keong Saik Road

TENURE 99 years wef 1988 Freehold 99 years wef 1984 99 years wef 2007 30+30 years wef 1 February 2008 99 years wef 2008 Freehold Freehold 99 years wef 1974 Freehold

NUMBER OF ROOMS 49 241 298 336 251 203 308 223 215 32

SELLER Berjaya Kum family Straits Trading Park Hotel Group United Engineers Park Regis Investment Park Hotel Group Ngo family HKR International Unlisted Collection

PURCHASER Elevation Group Alpha Investment Partners Far East H-Trust Ascendas Hospitality Trust Viva Industrial Trust China Investor Bright Ruby RB Capital Royal Group Holdings Associated International Hotels Limited

SALE PRICE S$50 mil S$150 mil S$264.3 mil S$300 mil S$138 mil S$250 mil S$1.15 bil S$232 mil S$210.85 mil S$35 mil

PRICE PER ROOM S$1.02 mil S$622,406 S$886,912 S$892,857 S$549,800 S$859,000 (assume S$1,800 psf for office)

S$1.5 mil (assume S$9,500 psf for retail) S$1.05 mil S$980,698 S$1.09 mil

DATE TRANSACTED March 2013 March 2013 April 2013 April 2013 November 2013 June 2013 August 2013 August 2013 August 2013 September 2013

Properties transacted by Colliers International

UE Bizhub East12 Berjaya Hotel IBIS Novena Rendezvous Grand Hotel Park Hotel Clarke Quay

13

PROPERTY Berjaya Hotel IBIS Novena Rendezvous Grand Hotel Park Hotel Clarke Quay UE Bizhub East (Hotel) Park Regis Grand Park Orchard Gallery Hotel The Sentosa Resort & Spa Hotel 1929TYPE Hotel Hotel Hotel Hotel Hotel Hotel/Office Hotel Hotel Hotel Hotel

LOCATION 83 Duxton Road 6 Irrawaddy Road 9 Bras Basah Road 1 Unity St 2&4 Changi Business Park Avenue 1 23 Merchant Road 270 Orchard Road 1 Nanson Road 2 Bukit Manis Road, Sentosa 50 Keong Saik Road

TENURE 99 years wef 1988 Freehold 99 years wef 1984 99 years wef 2007 30+30 years wef 1 February 2008 99 years wef 2008 Freehold Freehold 99 years wef 1974 Freehold

NUMBER OF ROOMS 49 241 298 336 251 203 308 223 215 32

SELLER Berjaya Kum family Straits Trading Park Hotel Group United Engineers Park Regis Investment Park Hotel Group Ngo family HKR International Unlisted Collection

PURCHASER Elevation Group Alpha Investment Partners Far East H-Trust Ascendas Hospitality Trust Viva Industrial Trust China Investor Bright Ruby RB Capital Royal Group Holdings Associated International Hotels Limited

SALE PRICE S$50 mil S$150 mil S$264.3 mil S$300 mil S$138 mil S$250 mil S$1.15 bil S$232 mil S$210.85 mil S$35 mil

PRICE PER ROOM S$1.02 mil S$622,406 S$886,912 S$892,857 S$549,800 S$859,000 (assume S$1,800 psf for office)

S$1.5 mil (assume S$9,500 psf for retail) S$1.05 mil S$980,698 S$1.09 mil

DATE TRANSACTED March 2013 March 2013 April 2013 April 2013 November 2013 June 2013 August 2013 August 2013 August 2013 September 2013

MARKETTRANSACTIONS

HOTEL

13Grand Park Orchard Gallery Hotel The Sentosa Resort & Spa Hotel 1929Park Regis

OURSUCCESSSTORIES

CLIENT:

Automobile Association of Singapore

BACKGROUND:AAS has been adopting a proactive approach towards managing the property, with a vision to enhance both the quality and value of the property. Nonetheless, the high maintenance cost and planning constraints led the Association to make the decision to divest the property. Colliers International was appointed for this purpose.

CHALLENGE:The space occupied by AAS was customised for its specific use back in the 1980s. Many parts of the space are no longer relevant whether to AAS or another user. In addition, the building in which AAS occupies is fast aging.

OUR ADVANTAGE:Colliers Investment Services team has both the knowledge and experience to propose a range of solutions to the client. Various options were considered including strata sale, enbloc sale, collective sale and conversion to service apartments. We carried out a detailed analysis on the various divestment options and held various discussions with the Client

to ensure that the final option best meet the Client’s objectives.

RESULTS:The divestment exercise resulted in the S$61.8 million sale of the property to Starlite Development Co Pte Ltd, a direct wholly-owned subsidiary of Far East Group Limited.

Colliers understands that AAS, being an association, would need ample time for its relocation exercise and Colliers proceeded to secure an extended legal completion, for almost a year, to allow sufficient time for AAS to source for alternative premises.

CASE REVIEW:“Having fully understood AAS’s specific requirements, we knew it was important to AAS to manage the varied expectations of its members within the association, while seeking to achieve the best possible sale price. Our recommendation to carry out the sale via an Expression of Interest (EOI) has allowed interested parties to participate in the bidding process, while giving them the flexibility to put forth their terms and conditions for AAS to review and consider. The EOI has also achieved transparency and competition for AAS.”

~ Tang Wei Leng14

Headquartered to Automobile Association of Singapore (AAS), AA Centre is a 14-storey mixed-use building with a freehold tenure and is located at 336 River Valley Road. Levels 1 to 4 of the Property are occupied by AAS and a restaurant operator, while Levels 5 and 6 are tenanted to a service apartment operator.

PROPERTY:

AA Centre Level 1 to 6

OUR ADVANTAGE:Self-storage space is a new but growing market in Singapore. Colliers has the advantage of an in-house Research & Advisory team that worked closely with the brokerage team to produce an in-depth study on this niche market.

The study provides investors with a better understanding of the self-storage concept in Singapore, as well as equips them with the necessary knowledge to make decisions on their investments.

RESULTS:Tapping into Colliers’ strong business network and proprietary database, we reached out to local and international self-storage operators, as well as private equity groups, institutional funds and Singapore companies who had expressed interest in the sector.

The divestment exercise resulted in 10 written offers and the profile of the bidders included: private equity (30%); existing operators from Singapore and overseas (30%); as well as local Singapore groups with no self-storage exposure (40%).

CLIENT:

A group of partners – Lazard Private Equity, Boustead Projects Pte Ltd and Michael Hagbeck, CEO Extra Space

BACKGROUND:In late 2011, the client was presented with various offers but none of them was successful. As a result, Colliers was exclusively appointed to carry out an Expression of Interest exercise to sell the Extra Space Self Storage business (Operating Company and Property Company).

With price benchmarks set by previous offers, Colliers had to exceed the client’s price expectations within a rigid timeframe.

The successful purchaser was a UK-based high-net worth family, led by a local private equity firm.

The final sale price was just above S$100 million, reflecting circa 12.5 multiple on the business’s EBITDA, and translating to an approximate 20% IRR.

CASE REVIEW:“This was the first time an Asian self-storage portfolio had been formally offered in the market. Colliers worked with the operator and owners to understand their

business and its key drivers. With this knowledge and Colliers’ expertise in the industrial sector, we were confident and were well-positioned to achieve an excellent result for our client.”

~ Tang Wei Leng

PROPERTY

Extra Space Self Storage

The Extra Space Self Storage portfolio consists of seven self-storage facilities spread across Singapore, Malaysia and Korea – of which, four were owned, two were leased and one was under a management contract. The total gross floor area is 681,582 sq ft, which is spread across 6,262 self-storage units. When the facilities are fully built, the number of self-storage units could potentially increase to 8,607. 15

CLIENT:

CapitaLand

BACKGROUND:Colliers’ relationship with CapitaLand goes back to the 1990s. In 2006, CapitaLand made known its intention to divest all the industrial properties in its portfolio and Colliers was engaged as its long-term partner in achieving this objective.

TechnoPark@Chai Chee (TPCC) was CapitaLand’s last remaining industrial property after the successful disposal of Kallang Bahru Complex/Kallang Avenue Industrial Centre in 2009 and Corporation Place in 2011, which were brokered by Colliers.

OUR ADVANTAGE:Colliers’ good track records established over the years, coupled with the satisfactory results achieved for CapitaLand’s earlier two divestments, have put the team in a good position to perform the same for TPCC.

Additionally, our in-depth experience and close relationships with all industrial players in Singapore have enabled the team to cover the market comprehensively and assess the capability of the bidders.

RESULTS:As the client is a listed company, transparency and accountability were critical elements in the marketing process. Colliers was extra mindful of these during the shortlisting of bidders.

Colliers proposed to the client to carry out an Expression of Interest (EOI) exercise to attract competitive bids and our strategic approach has resulted to bids that were aligned with the market value. Private treaty was carried out after the EOI exercise and Colliers was able to identify the buyer that has the ability to complete the deal.

TPCC was eventually sold for S$193 million to the highest bidder – Viva Industrial Trust. Colliers

provided support to the client throughout the entire process – from identifying the buyer to the complex coordination with the authorities to the demanding negotiation of terms and conditions.

CASE REVIEW:“Our superior knowledge of the industrial market and excellent insights into the appetite and profile of potential buyers have put us in good stead to guide and help the client achieve its objective. In addition, our strong and long-standing relationship with both the client and the successful bidder has instilled in them much confidence in Colliers and our capability. Hence, our advice was sought and relied upon during the negotiation process which eventually led to the successful closure.”

~ Tang Wei Leng

16

An industrial development comprising six high-tech buildings with in-house amenities. The development has a gross floor area of approximately 1.53 million sq ft and land area of approximately 610,000 sq ft.

PROPERTY:

TechnoPark@Chai Chee

The property consists seven blocks of office, laboratory, warehouse and production facilities with several blocks of refinery, and plant and machinery structures.

The property sits on a JTC land (approximately 575,800 sq ft) with balance tenure of about 33.5 years. It has prominent frontage along Pioneer Road.

CLIENT:

NK Chemicals Pte Ltd

BACKGROUND:NK Chemicals Pte Ltd was looking to sell and leaseback the property with optimal terms and conditions.

Colliers proposed an Expression of Interest (EOI) exercise to create a competitive platform to identify a genuine buyer who would submit the most competitive bid price with attractive leaseback terms and conditions.

OUR ADVANTAGE:Given Colliers’ wealth of experience and impressive track records, we are very familiar with a sale & leaseback structure, and are able to create a win-win situation for both our client and the buyer.

RESULTS:The divestment exercise resulted in the S$60 million sale with a leaseback agreement for a period of 15 years.

CASE REVIEW:“Colliers created a competitive platform via an EOI exercise, where interested prospects were required to submit their best bids. During the negotiation process, Colliers faced several challenges and we overcome the challenges by demonstrating our market expertise and knowledge. We were able to iron out the differences to the satisfaction of both our client and the successful buyer.”

~ Tang Wei Leng

17

PROPERTY:

2 Pioneer Sector 1

NEW APPOINTMENTS

A freehold commercial development comprising retail shops, restaurants, offices and medical suites in a part-6/part-12-storey building.

Site Area: 68,512 sf

Type of Sale: Collective Sale (pending launch date)

TANGLIN SHOPPING CENTREA 20-storey freehold commercial development comprising 3 floors of retail podium, 16 floors of office space and a basement carpark.

Site Area: 21,909 sf

Type of Sale: Collective Sale (pending launch date)

THE ARCADE

18

A mixed commercial and residential development comprising a 7-storey front podium with a roof terrace and a 10-storey rear podium.

Site Area: 76,617 sf

Type of Sale: Collective Sale (pending launch date)

PEACE CENTRE PEACE MANSION

FAR EAST FINANCE BUILDING

19

A freehold 13-storey commercial development with redevelopment potential located within the Central Business District.

Site Area: 6,060 sq ft

Type of Sale: Collective Sale (pending launch date)

A prime freehold residential redevelopment site located in District 10.

Site Area: 33,249 sf

Type of Sale: Collective Sale

JERVOIS GARDENS

Accelerating success.