Singapore-listed shipbuilding group Yangzijiang Shipbuilding BS6 and its subsidiaries have entered a share purchase agreement to acquire a 100% stake in the office block at 39 Robinson Road in the CBD.
The China-based company acquired the property via its 81%-owned entity Yangzijiang Realty. Two other joint venture partners, real estate company 9Co Parker and boutique investment firm ICH Singapore Holdings, took equity stakes of 10% and 9%, respectively, in Yangzijiang Realty.
The purchase price for the 21-storey office building is $399 million. That works out to $2,357 psf, based on the gross floor area (GFA) of 169,252 sq ft.
"Having been listed on the SGX mainboard for 16 years and being an STI index component company, the acquisition gives us an opportunity to deepen our roots in Singapore with our very own office building," comments Ren Letian, executive chairman and CEO of Yangzijiang in a statement.
"Furthermore, considering the highly inflationary environment, we see this as a good vehicle to preserve our existing capital over the long term while also providing us stable rental cash flow," adds Ren.
According to Ren, "this is a one-off exercise", and the company's focus remains its core shipbuilding business.
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The firm will appoint a professional real estate manager to manage the marketing activities and operations of the office building with the intention of "branding it as a financial hub to attract tenant profiles like institutional investors and family offices", says Ren.
Shares in Yangzijiang Shipbuilding closed 3 cents higher or 2.48% up at $1.24 on March 29.
