www.shaproperty.com

Property trust manager Allco Singapore is buying an office property in Raffles Place for S$72 million.

It is buying 55 Market Street in a deal that works out to S$969 per square foot.

The deal is only expected to be completed towards year-end, upon completion of its refurbishment.

The revamped property will feature river views and natural light, as well as new hardware and enhanced retail and office space.

The company expects office rentals to rise steadily through to 2007 and it says this move positions Allco REIT well to ride that growth.

Allco Singapore runs the Allco Commercial Real Estate Investment Trust, or Allco REIT.

Allco says the acquisition will not affect the company's 2006 earnings, but should do from 2007.

Allco Singpore says it is confident of achieving at least 20 percent pre-commitment.

And it expects the property to be fully leased within a year from acquisition.

The company will have a gearing of nearly 40 per cent with the purchase, which will be financed using a mix of debt and cash reserves. - CNA/ch