JLL advises on sale of Cross Street Exchange in Singapore CBD
Landmark transaction of CBD property shows deepening confidence in Singapore mixed use assets
Singapore, 25 January 2022 – JLL (NYSE:JLL) today announced that it advised and managed the sale process of Cross Street Exchange, a centrally located mixed-use development in downtown Singapore. JLL exclusively advised on the transaction on behalf of the seller, Frasers Commercial Trust, a wholly owned sub-trust of Frasers Logistics & Commercial Trust (“FLCT”), who sold the asset for S$811 million (US$602 million).
Built in 2002, Cross Street Exchange comprises a 15-storey office tower, retail podium and heritage shophouses.
For the buyer, Cross Street Exchange comes with a remaining tenure of approximately 74 years. Adding to the attractiveness of the asset, the mixed-use development underwent extensive upgrading works in 2019 to rejuvenate and reposition the retail podium.
“Core Singapore assets remain the preferred investors’ real estate strategies given that the upside fundamentals of the broader market have remained solid throughout two years of global uncertainty. This transaction proves that the allure of CBD office space remains high and that investors also see longer-potential in retail opportunities offered in mixed use developments. JLL is delighted to have managed this sale and we congratulate both parties involved in this major transaction,” says Ting Lim, Executive Director, Head of Capital Markets, Singapore, JLL.
Cross Street Exchange comprises 305,739 sq ft of office net leasable area (NLA). The retail podium, located at 18 Cross Street and shophouses at 20 Cross Street, 22 Cross Street and retail units along 181 South Bridge Road, comprises 87,109 sq ft of NLA.
“The Singapore office market remains a major draw for institutional investors and we expect the sector to attract significant amounts of global capital in 2022 and beyond. Competition for Grade A assets will further tighten this year and as a result, we’re confident that asset prices will surge in prime locations,” says Stuart Crow, CEO, Capital Markets, Asia Pacific, JLL.
According to JLL, Singapore’s CBD Grade A office rents posted full-year growth of 4.2% in 2021, far exceeding the firm’s forecast of a 6% contraction made at the beginning of the year. Rent recovery amid the pandemic has reinforced the sound fundamentals of Singapore’s office property market this year, with JLL predicting CBD Grade A office rents in 2022, potentially doubling last year’s growth rate.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 95,000 as of September 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.