Thakral acquires leasehold office property at The Riverwalk for $30 mil

/ EdgeProp
May 23, 2018 7:06 PM SGT
Singapore-listed Thakral Corporation has announced plans to acquire an 18,998 sq ft office property at The Riverwalk in Clarke Quay. The office unit is on the third floor of the 27-storey commercial and residential development, which has a 99-year leasehold tenure commencing December 1980. The Riverwalk office property is owned by Thakral Realty (S).
The office unit is on the third floor of Riverwalk, a 27-storey commercial and residential development (Picture: Samuel isaac Chua/The Edge Singapore)
In addition, Thakral Corp will purchase the entire shareholding of Thakral Realty (S), which has an outstanding loan of $21 million, for $9 million. Thus, the total consideration to acquire the property will be $30 million. The acquisition is part of the company’s plans to expand its investment portfolio in Southeast Asia.
The office unit is currently fully tenanted and has a valuation of $30.5 million, according to a recent valuation by JLL. Upon completion of the proposed acquisition, Thakral Corp will sign a three-year leaseback agreement with the tenants of the office unit. The monthly rent will be $5.50 psf, and the gross monthly rental will be about $101,739.
The Riverwalk comprises four-storey commercial space with basement shopping podium and a 21-storey residential tower.