Deals fall through for 22 units at Draycott Eight, Parkview Square in Bugis
Observers say this is due mainly to reasons specific to the respective deals, though geopolitical uncertainties and rising interest rates have also made investors more selective
A sale has failed to materialise for Parkview Square, a 24-storey art deco style office tower in the Bugis area for which Baring Private Equity Asia (BPEA) had been doing exclusive due diligence for a potential purchase at around S$900 million.
Also not happening is the sale of a stack of 22 units at the Draycott Eight condo, in one of Singapore’s most posh residential districts. The Business Times reported in June that an Indonesian family was in exclusive due diligence with a view to buying the units for a total of nearly S$168 million from US-based privately-held alternative investment firm Angelo Gordon.
For Parkview Square - dubbed the “Batman Building” for its design reminiscent of skyscrapers in the fictional Gotham City, home of DC Comics superhero Batman - a price of S$900 million would reflect nearly S$2,700 per square foot (psf) based on the net lettable area (NLA) of 336,000 square feet (sq ft). The property is on a site with about 74 years’ balance lease and its development potential has been maximised.
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