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

Yangzijiang Realty and its joint venture partners have entered into a 15-year sale and leaseback agreement with Robinson Partners Private Limited, the seller of the property, for the sale of the entire office building on a sale and leaseback basis.

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Yangzijiang, a Singapore-listed shipbuilding group and its subsidiaries, recently announced the purchase of a 100% stake in the office block at 39 Robinson Road in the Central Business District (CBD). The purchase price for the 21-storey building is $399 million, which works out to $2,357 psf, based on its gross floor area (GFA) of 169,252 sq ft.

The China-based company acquired the property via its 81% owned entity Yangzijiang Realty. Two other joint venture partners, real estate company 9Co Parker and boutique investment firm ICH Singapore Holdings, took equity stakes of 10% and 9%, respectively, in Yangzijiang Realty.

Executive chairman and CEO of Yangzijiang, Ren Letian, commented on the acquisition saying, “Having been listed on the SGX mainboard for 16 years and being an STI index component company, the acquisition gives us an opportunity to deepen our roots in Singapore with our very own office building.” He went on to explain the decision to acquire the property, “Considering the highly inflationary environment, we see this as a good vehicle to preserve our existing capital over the long term while also providing us stable rental cash flow.” Furthermore, Ren stated that this was a “one-off exercise” and the company’s primary focus remains its core shipbuilding business.

As part of their plan, Yangzijiang Realty and its joint venture partners have entered into a 15-year sale and leaseback agreement with Robinson Partners Private Limited, the seller of the property. To further add value to the property, Yangzijiang looks to appoint a professional real estate manager to manage the marketing activities and operations of the office building. This is in the hopes of “branding it as a financial hub to attract tenant profiles like institutional investors and family offices”, says Ren.

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