SINGAPORE (EDGEPROP) - TE Capital Partners and LaSalle Investment Management have jointly acquired PIL Building located at 140 Cecil Street for $323.8 million, according to a caveat lodged in January 2022.

See also: TE Capital Partners in exclusive due diligence to buy PIL Building

A joint venture company held by funds managed by TE Capital and LaSalle Investment Management has completed the purchase of the 17-storey office building that sits on a 19,539 sq ft site in Singapore’s Central Business District (CBD), according to a Feb 15 statement.

TE Capital Partners will be the operating partner for the joint venture, which is the first partnership between the two firms. TE Capital was co-founded by siblings Emilia and Terence Teo, who represent the third generation of the Teo family-controlled Tong Eng Group. The siblings both serve as managing directors in TE Capital.

Meanwhile, real estate investment manager LaSalle Investment Management is an independent subsidiary of Jones Lang LaSalle.

The joint venture company plans to redevelop the property into a Grade A office building. The proposed building will feature Green Mark Platinum Certification, a high floor to ceiling height of 4.9m and efficient floor plates which would provide ample flexibility for single or multitenant use.

Under the 2019 Master Plan, the site is zoned commercial with a plot ratio of 11.2. The new building can therefore be redeveloped into a new complex with total gross floor area (GFA) of 218,447 sq ft. This means the purchase price of $323.8 million translates to $1,900 psf per plot ratio (psf ppr) including maximising GFA and topping up of the lease of two strips of land from 99-year lease to freehold tenure. This brings the total freehold site area to 19,539 sq ft. The deal was brokered by Shaun Poh, executive director of capital markets for Cushman & Wakefield.

TE Capital and LaSalle Investment Management say the synergistic tie-up represents the vote of confidence both managers have in the Singapore office sector.

“We have seen increasing office demand in the Singapore CBD from the technology and financial services tenants and are expecting a moderate level of new supply coming into the market in the next few years,” says Emilia. Terence adds that the opportunity can allow the joint venture to capitalise on an upswing in the Singapore office market.

Claire Tang, Co-CIO Asia Pacific, LaSalle Investment Management says: “This asset is a welcome addition to our portfolio as we continue to witness increasing participation from global institutional investors in the Singapore office sector and sustained occupier demand from global tech companies and financial institutions amidst the pandemic.”

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