Tag Archives: Chevron House

Deka buys $545.5m Chevron House from Goldman Sachs

Germany’s Deka Immobilien has bought a Singapore office tower for about US$420 million ($545.5 million), broker Savills said on Tuesday, in a deal that crystallises a hefty loss on the price paid by owner Goldman Sachs in 2007.

“The transaction reflects a 30% discount from the peak pricing of 2007 and prime rental levels remain approximately 50% below their peak in 2007,” said Craig Ward, a director at global consultant Savills, which advised fund manager Deka.

A Goldman-linked property fund had bought Chevron House from Singaporean developer CapitaLand in September 2007, at a then-record price of $2,780 per square foot, or $730 million in total, local newspapers reported.

Savills said Deka, which bought the 262,650 square feet property at an initial yield of 4%, sees strong potential for rental growth and asset enhancements for the 29-storey tower located in Singapore’s Central Business District.

The consultancy said a number of other investors, in addition to Deka, are seeking assets in Singapore ranging from $50 million to $500 million, drawn by the city-state’s strong economic growth and recovery in its office market.

Singapore’s Prime Minister Lee Hsien Loong told Reuters in an interview earlier this month the city-state’s red-hot property market was a matter of concern and needed careful monitoring to avoid the creation of a bubble.

Goldman real estate funds have been offloading assets in Asia so far this year, and in August sold two other Singapore office blocks for $870.5 million to Overseas Union Enterprise, a firm controlled by Indonesia’s Lippo Group.

Source : The Edge – 16 Nov 2010

Raffles Place’s Chevron House sold for $547m

Chevron House at Raffles Place has been sold for $547 million to a fund management Deka Immobilien of Germany, taking the total value of Singapore office investment sales deals this year to around $3 billion.

The price works out to around $2,083 per square foot based on the net lettable area (NLA) of 262,650 sq ft.

Formerly known as Caltex House, Chevron House is a 33-storey building on a site with a remaining lease of about 78 years.

The property is being sold by Goldman Sachs funds who paid $730 million or about $2,780 psf for the property in 2007. That acquisition was funded mostly by a consortium of lenders headed by Standard Chartered. The latest transaction is slated for completion by late October, ahead of the expiry of the financing facility, sources say.

The Singapore office market has seen a steady rental recovery after the global financial crash.

‘The fundamentals are attractive. Investors have realised this over the past three months and investor appetite has increased significantly. Parties looking to invest include Reits, other property funds and private investors. Appetites range from $100 million to $500 million-plus,’ said a market watcher.

Deka, the buyer, is a unit of DekaBank in Germany. This is Deka’s first major property acquisition in Singapore and is said to be at close to 4 per cent net yield. Chevron House is currently 98% occupied. Major tenants include Chevron and Visa.

The property consists a four-storey retail podium, 29-storey office tower and three basement levels. B1 has retail shops linked to the Raffles Place MRT Station, while B2 and B3 contain 96 carpark lots.

CapitaLand sells 50% stake in Chevron House for over S$366m

CapitaLand has sold its entire 50 percent stake in Chevron House for over S$366 million.

When the deal is done, the property developer will book a gain of S$151 million on the investment.

Chevron House is an office building in the banking and financial district of Raffles Place.

It was formerly known as Caltex House.

CapitaLand has been taking advantage of the buoyant office property market to divest its interest in several commercial buildings.

Another of its property, Hitachi Tower, is also said to be up for sale. – CNA/ms

Source : Channel NewsAsia – 30 Aug 2007