Lian Beng joint venture sells Wilkie Edge to Keppel Capital

Keppel Capital has reportedly signed a joint venture agreement (JV), between Lian Beng Group, Apricot Capital and Apricot Capital to sell office and retail space in Wilkie Edge area of Selegie.

The Business Times has been informed that the price of this property is around S$350,000,000, or S$2,200 per square foot, based on an area net lettable of 154,500 square feet, which is mainly offices.

In 2017, the Lian Beng-Apricot JV acquired the asset from CapitaLand Commercial Trust, then known as CCT. The JV reportedly did some minor renovations to the asset.

Apricot Capital, the family office that was founded by the Teo family who founded the Super Group three-in-one empire of coffee, is a family-owned business.

Wilkie Edge has a term of 81 years, which ends on February 20, 2005.

The 12-storey building, located at the corner Wilkie and Selegie Roads, is home to the Lian Beng-Apricot JV’s office and retail space as well as the Citadines Mount Sophia, a 154-apartment complex.

CapitaLand Ascott Trust is leasing the serviced residence/hotel for the remainder of the site lease.

Keppel Capital, the asset management arm within Keppel Corporation, is expected to assume the rights and obligations related to this lease. This will be similar to the acquisition of Wilkie Edge by Lian Beng & Apricot six years ago.

Wilkie Edge’s office and retail spaces are almost completely occupied. Kaplan and Stone Forest are two of the major tenants.

The Continuum Singapore

The market has heard that Keppel Capital’s price translates into a net return of around 3 percent. Observers anticipate that the new owner will implement asset enhancement measures to optimize the asset.

CBRE is believed to have arranged the private sale of Wilkie Edge’s office and retail spaces.

CapitaLand developed Wilkie Edge on the site of the former Selegie Complex. Selegie Complex used to be part of Pidemco Land’s portfolio, which merged in 2000 with DBS Land and became CapitaLand.

CapitaLand bought Wilkie Edge in 2008 from CCT. CCT merged with CapitaLand Mall Trust to form CapitaLand Integrated Commercial Trust in 2020.

Separately negotiations are under way for the sale of Hotel G Singapore, owned by Gaw Capital Partners in Hong Kong and located near Middle Road/Bencoolen Street for approximately S$235 millions.

CapitaLand Group is believed to be the prospective buyer.

Most of the 308 rooms in this freehold hotel are 12 square meters each.

The gross floor area of the 16-storey structure is approximately 94,600 square feet. The property’s potential for development has been maximized. However, it is possible to add value by converting the parking space on the 4th floor into more hotel rooms.