Lian Beng-Apricot Capital JV selling Wilkie Edge to Keppel Capital
November 10, 2023
A JOINT venture (JV) between Lian Beng Group and Apricot Capital is said to have entered into a deal to sell the office and retail space at Wilkie Edge in the Selegie area to Keppel Capital.
The Business Times understands that the price is close to S$350 million, which reflects S$2,200-plus per square foot based on a net lettable area of about 154,500 sq ft comprising mostly offices.
The Lian Beng-Apricot JV paid S$280 million for the asset in 2017, acquiring it from the-then CapitaLand Commercial Trust ( CCT ). The JV is said to have done some minor refurbishments to the asset.
Apricot Capital is the family office of the Teo family that founded the three-in-one coffee empire Super Group.
Wilkie Edge is on a site with a balance term of about 81years ending Feb 20, 2105. Standing at the corner of Wilkie and Selegie roads, the 12-storey complex comprises not only the office and retail space owned by the Lian Beng-Apricot JV but also the 154-apartment Citadines Mount Sophia. The serviced residence/hotel is currently leased for the balance of the site lease ( less a day) to CapitaLand Ascott Trust.
Keppel Capital – the asset managements arm of Keppel Corporation – is expected to take over the existing rights and obligation relating to this lease, similar to what Lian Beng and Apricot did when they acquired Wilke Edge about six years ago.
The office and retail space in Wilkie Edge is almost fully occupied. Major tenants include Kaplan and Stone Forest.
Word in the market is that the price Keppel Capital is paying translates to a net yield of about 3 per cent. Observers expect the incoming owner to implement asset enhancement initiatives to optimise the asset.
CBRE is understood to have brokered the sale of Wilkie Edge’s office and retail space through private treaty.
Wilkie Edge was developed on the former Selegie Complex site by CapitaLand. Selegie Complex was part of the portfolio of the former Pidemco Land, which in 2000 merged with DBS Land to form CapitaLand. In 2008, CapitaLand sold Wilkie Edge to CCT, which in 2020 merged with CapitaLand Mall Trust (CMT) to form CaitaLand Integrated Commercial Trust.