Frasers Commercial Trust (FCOT) has sold 55 Market Street, a 16-storey commercial property in Raffles Place, for $216.8 million. This is equivalent to $3,020 psf based on the building’s net lettable area.

The sale price was arrived at through a marketing process conducted by an appointed property consultant.

The transaction is expected to be completed by August 31, says Frasers Commercial Asset Management, the manager of FCOT.

55 Market Street comprises 15 floors of office space and two floors of retail space on the ground floor and basement level. The property has a total net lettable area of 71,796 sq ft and a committed occupancy of 87.9% as at end March.

The sale price represents a 44.5% premium above the property’s valuation of $150 million ($2,089 psf) as at July 1, and is almost three times the original purchase price of $72.5 million ($1,010 psf) in 2006.

FCOT is expected to recognise an estimated net gain of about $76.5 million over the property’s book value of $139.0 million as at September 30, 2017.

The sale price implies an annualised net property income yield of 1.7%, based on the net property income of 55 Market Street for the financial quarter which ended on March 31.