PGIM Real Estate has completed the acquisition of 108 Robinson Road, a 12-story freehold office building located in the heart of the Central Business District (CBD) in Singapore for US$107 million. PGIM Real Estate is the real estate investment and financing business of PGIM, the US$1.5 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU).
Within walking distance to the Tanjong Pagar, Telok Ayer and the upcoming Shenton Way Mass Rapid Transit (MRT) stations, the property provides convenient access to and from many key residential and commercial hubs across Singapore. A rare freehold office asset in the Singapore CBD, 108 Robinson Road is an opportunistic acquisition that offers numerous asset enhancement and exit strategies.
“This acquisition signals our strong conviction in the recovery of the Singapore office market, as well as our proactive stance for real estate investments in the Asia-Pacific region,” said Benett Theseira, PGIM Real Estate’s head of Asia-Pacific. “The Singapore government has managed the pandemic and reopening of the economy well. With employers encouraging staff to return to the office and the strengthened position of Singapore as a leading regional financial and technological services hub, we expect to see continued growth in demand for office space in the CBD.”
The entire area and surroundings of 108 Robinson Road are expected to be further uplifted as a result of the ongoing refurbishment and redevelopment works to a number of properties in that vicinity. Leveraging on this, PGIM Real Estate plans to initiate an asset enhancement program which will include a façade upgrade, a new office lobby and initiatives to enhance the ESG quotient of the asset, including an overhaul of its mechanical and electrical systems in order to achieve the Building & Construction Authority’s “Green Mark – Gold” certification.
The transaction follows PGIM Real Estate’s acquisition of Luxasia Building in September 2020, a six-story industrial asset located in Paya Lebar iPark, Singapore for US$55 million. It also follows a string of investments in the Asia-Pacific region in the last six months including the acquisition of two multifamily portfolios and an office building in Tokyo, two logistics joint ventures in China, residential development joint ventures in Sydney and several ongoing transactions for its core, core-plus and value-add real estate strategies.