Monday, October 23, 2006
[RealEdge] BT : SingTel sells Robinson Rd site for $163m
| Published October 23, 2006  | |
| SingTel sells Robinson Rd site for $163m
By CONRAD TAN
SINGAPORE Telecommunications has sold its Robinson Road building, formerly known as Crosby House, for $163.4 million in cash to a joint venture between Lehman Brothers and the Asian arm of Japan's Kajima Corp. SingTel said it expects a net gain of $143.5 million from the sale of the seven-storey block at No 71, which has a net book value of about $19.7 million. This week SingTel will receive $16.3 million or 10 per cent of the purchase price. The remaining 90 per cent will be paid on completion of the sale, which is expected to be in December. The offer by Kajima Overseas Asia Pte Ltd - Kajima Corp's Asia (ex-Japan) arm - and Lehman Brothers is more than double the $69 million price tag placed on the site for commercial development by independent valuer Chesterton International in July. The 1950s property, which sits on a 2,279 square metre piece of land at the junction of Robinson Road and McCallum Street, is one of the last underdeveloped sites on the prime financial district street. The site could be redeveloped to house a 35-storey office building or a 52-floor apartment block. SingTel put it up for sale in August, appointing Credo Real Estate which had handled the sale of SingTel's Old Holland Road and West Coast Road sites to market the property via a public tender. The tender sale was launched on Aug 24 and closed on Sept 28. SingTel said the property is not required for its business and that its sale will not affect the company's other operations. Deputy group chief executive Chua Sock Koong said: 'This sale will allow us to free up cash resources and redeploy them in our core telecommunication business and new investments. Kajima Overseas Asia has about $1 billion of property investments in Singapore through stakes in the Millenia Singapore development and The Regent Singapore hotel. In August, Kajima secured its first residential development site here through the en bloc sale of Balmoral View. |
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