Shipbuilder Yangzijiang acquires office building at 39 Robinson Road for $399 mil

Yangzijiang, a Singapore-listed shipbuilding group, along with its subsidiaries, have recently entered a share purchase agreement to acquire a 100% stake in a 21-storey office block in the CBD of Singapore located at 39 Robinson Road. The purchase price of the office building is $399 million, which works out to $2,357 psf, based on the gross floor area (GFA) of 169,252 sq ft.

The acquisition was realised through Yangzijiang’s 81%-owned entity, Yangzijiang Realty. Two other joint venture partners, 9Co Parker and ICH Singapore Holdings, also took up equity stakes of 10% and 9% respectively.

Executive Chairman and CEO of Yangzijiang, Ren Letian, offered his thoughts on the acquisition. “This purchase gives us the chance to further solidify our foundation in Singapore, being that we have been listed on the SGX mainboard for 16 years and are an STI component company. Considering the inflationary environment, we view this as a sound method to preserve our existing capital over the long-term while providing us with a stable rental cash flow,” he said.

Ren has indicated that this is a “one-off exercise,” and that the company’s core business focus is still shipbuilding. To maximise the potential of the office building, Ren has stated his intention to appoint a professional and experienced real estate manager to manage and market the building to the highest calibre, branding the block as a financial hub and aiming to attract tenant profiles such as institutional investors and family offices.

Robinson Road is a popular and vibrant street making it an attractive location for potential tenants to invest and set up shop.

Check out the latest listings near Robinson Road for more information regarding property offerings.