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News Release

Singapore

Landmark Chevron House in Raffles Place up for sale


​SINGAPORE, 1 August 2017 – The owner of Chevron House (Deka Singapore) has appointed CBRE and JLL to conduct an Expressions of Interest (EOI) for its prime Raffles Place office and retail asset.  The EOI will be launched on Wednesday, 2 August 2017 with bids due on Thursday, 14 September 2017.

Chevron House is a 32-storey commercial building comprising a 5-storey retail podium (B1 to L4) and a 27-storey office tower (L6 to L32). It was completed in 1993 and has direct access to Raffles Place MRT station via B1. There are also 96 carpark lots in the 2-storey basements.

The 29,891 sq ft site has a tenure of 99 years starting from 7 December 1989 with 71 years remaining. The office tower and retail podium have a NLA of approximately 215,667 sq ft and 45,613 sq ft, respectively, and has an overall occupancy rate of 98 per cent. 

Deka Singapore has engaged RSP Architects to evaluate the Asset Enhancement Initiatives (AEI) potential for Chevron House. It is timely to renovate the office common areas including the entrance lobby, lift lobbies and toilets. In addition, there is an unutilized GFA of approx. 14,950 sq ft, which subject to the relevant approvals should be accommodated in the retail podium. No development charge is payable for the additional GFA.

Jeremy Lake, Executive Director Capital Markets at CBRE said: “Sentiment towards the office investment market has improved significantly in the last six to nine months and there are now more buyers than sellers. The fear around the “office oversupply” situation has evaporated and most investors are expecting rental growth to return in 2018 and beyond. We expect to achieve in excess of $700 million which is very realistic and reflects a blended price of $2,700 psf on the total NLA of approx. 261,280 sq ft. The net yield at $700 million is estimated to be in the region of 3.6% in the first year.”

Anthony Barr, Regional Director of Capital Markets at JLL Singapore said: “Chevron House is likely to appeal to Singapore and foreign-based investors including property funds, corporates and family offices/UHNW’s. Chevron House is a well-recognized landmark asset that has consistently outperformed the broader market in terms of rental growth and occupancy. It has a strong track record and further upside potential as various asset enhancement initiatives will drive strong investor interest.”