FCOT sells 55 Market Street for $216.8 mil

By
/ EdgeProp
|
July 11, 2018 9:57 PM SGT
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.
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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.
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