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CapitaLand to sell stake in Samsung Hub for $140m

 
18 January 07 | The Business Times
by Kalpana Rashiwala
 

(SINGAPORE) CapitaLand is said to be close to finalising a deal to sell its stake in Samsung Hub on Church Street to Ho Bee for over $140 million.

BT understands that the price works out to almost $1,400 per square foot, based on the net lettable area of about 105,000 sq ft involved in the transaction.

The space comprises the lowest stack of office floors in the 30-storey building - from the eighth to 15th floors (the first to seventh floors are used for car parking). The 999-year leasehold office block is located near Raffles Place.

The Singapore Chinese Chamber of Commerce and Industry's subsidiary Chinese Chamber Realty and OCBC own the rest of the space at Samsung Hub.

The building was in the headlines previously for developing a 0.1-degree tilt during its construction, which began in October 2000. The tilt was highlighted in 2002 and the problem was later rectified by the building's main contractor, Samsung.

Under a deal struck with the building's owners, Samsung agreed to lease several floors in the building - this is not the space owned by CapitaLand.

In 1997, the former DBS Land (which later merged with Pidemco Land to form CapitaLand) entered the venture to develop the property. Based on earlier reports, DBS Land paid Chinese Chamber Realty $118.19 million for a half-stake in the latter's plot earmarked for development into an office project. Two years later, OCBC joined the venture, contributing its plot next door for amalgamation and development.

Late last year, CapitaLand sold nine floors in Springleaf Tower on Anson Road to a property fund managed by Macquarie Global Property Advisors for $99 million, or $1,237 psf based on the net lettable area involved of about 80,000 sq ft.

Springleaf Tower is on a site with 88 years lease left. The 37-storey project was developed by Ban Hin Leong Group, which is now in financial difficulties.