Chevron House in S'pore for sale from S$700 mil

SINGAPORE (Aug 2): Deka Singapore has put Chevron House at Raffles Place on the market at a guide price of more than US$700 million (RM434.3 million)  (about S$2,700 psf). The Expression of Interest (EOI) exercise for Chevron House will launch today and close on Sept 14, according to joint marketing agents CBRE and JLL.

Completed in 1993, Chevron House is a 32-storey commercial building that comprises a five-storey, 215,667 sq ft retail podium as well as a 27-storey, 45,613 sq ft office tower. Both components have an overall occupancy rate of 98%. Chevron House is directly connected to Raffles Place MRT via its basement level.

The property sits on a 29,891 sq ft land plot, with a remaining tenure of 71 years on its 99-year lease. Chevron House is likely to appeal to both Singaporean and foreign investors, including property funds, corporations, family offices and ultra-high-net-worth individuals (UNWI), comments Anthony Barr, regional director of capital markets at JLL Singapore.

Executive director, capital markets at CBRE, Jeremy Lake, expects the property to fetch more than $700 million due to improved office investment market sentiment and expected rental growth in 2018 and beyond. He adds that the net yield investors could receive at that purchase price is estimated to be in the region of 3.6% in the first year.