Singapore’s Landmark Building, Chevron House, Up for Sale

Hong Kong, 2 August 2017 – The owner of Chevron House, Deka Singapore, has appointed CBRE and JLL to conduct an Expressions of Interest (EOI) for its prime Raffles Place office and retail asset.  The EOI, which starts today, will close on Thursday, 14 September 2017.

Chevron House is a 32-storey commercial building comprising a 5-storey retail podium (B1 to L4) and a 27-storey office tower (L6 to L32). It was completed in 1993 and has direct access to Raffles Place MRT station via B1. There are 96 carpark lots in the 2-storey basements.

The 29,891 sq. ft. site has a tenure of 99 years starting from 7 December 1989, with 71 years remaining. The office tower and retail podium have a NLA of approximately 215,667 sq. ft. and 45,613 sq. ft., respectively, and has an overall occupancy rate of 98 per cent.

“We expect Chevron House to achieve valuation in excess of S$700 million which is very realistic and reflects a blended price of $2,700 psf on the total NLA of approx. 261,280 sq. ft. The net yield at S$700 million is estimated to be in the region of 3.6% in the first year,” said Jeremy Lake, Executive Director, Capital Markets, CBRE.

“Now that Singapore’s office market appears to have bottomed out after 2 years of rental decline, the attention of investors in Hong Kong looking to diversify their real estate portfolios has been piqued. With strong Hong Kong buying activity in Singapore in the first half of 2017, Hong Kong investors are poised to play a more active role in Singapore’s office market in the next 6 months,” Lake added.

“Sentiment towards the office investment market has improved significantly in the last six to nine months and there are now more buyers than sellers. The fear around the “office oversupply” situation has evaporated and most investors are expecting rental growth to return in 2018 and beyond.”

Deka Singapore has engaged RSP Architects to evaluate the Asset Enhancement Initiatives (AEI) potential for Chevron House. There is potential to renovate the office common areas including the entrance lobby, lift lobbies and toilets. In addition, there is an unutilized GFA of approx. 14,950 sq. ft., which subject to relevant approvals can be accommodated in the retail podium. No development charge is payable for the additional GFA.

 

Disclaimer:

Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
 

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.​

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