Brokers' take

Singapore Office Reits

DBS Group Research, June 7

Asia Square Tower 1 has reportedly been sold to Qatar Investment Authority (QIA) for a record price of S$3.4 billion. This implies a price of S$2,667.5 psf NLA for the tower which comprises close to 1.2 million sq ft of office space and 40,000 sq ft of retail area. Assuming an average rent of S$10-11 psf, this implies a net yield of 3.1-3.2 per cent.

QIA is likely to be taking a longer term investment view given that the property has a possibility of vacancies rising to about 20 per cent in …