JV company comprising TE Capital, LaSalle buys PIL Building for undisclosed amount

DRAGON Peak Limited, a joint-venture (JV) company that consists of 2 funds which are each managed by TE Capital Partners and LaSalle Investment Management, has completed the acquisition of PIL Building along Cecil Street for an undisclosed amount.

The JV plans to redevelop PIL Building into a Grade A office building that has a Green Mark Platinum Certification with a high floor-to-ceiling height of 4.9 metres and efficient floor plates which would provide ample flexibility for single or multi-tenant use.

TE Capital Partners will be the operating partner for the JV.

In a joint press statement on Tuesday (Feb 15), TE Capital Partners and LaSalle Investment Management said this "synergistic tie-up" represents the vote of confidence both managers have in the Singapore office sector. It also marks the first partnership between both companies.

Emilia Teo, managing director of TE Capital Partners, said: "We have seen increasing office demand in the Singapore CBD from the technology and financial services tenants and are expecting a moderate level of new supply coming into the market in the next few years."

Claire Tang, co-chief investment officer of LaSalle Investment Management, said PIL Building is a "welcome addition" to the firm's portfolio amid increasing participation from global institutional investors in the Singapore office sector, as well as sustained occupier demand from global tech companies and financial institutions during the pandemic.

Both companies added that Singapore has a strong reputation as a stable and resilient property market with an enviable track record for mid to long-term capital value growth and preservation.

"It has performed well during the pandemic and stands out as one of the most preferred office investment destinations in the region."

PIL Building, located at 140 Cecil Street, is a 17-storey office building that sits on a 1,815 square metre site.

The Business Times reported in July 2020 that the building had quietly been put on the market through an expression of interest (EOI) exercise. The EOI had drawn strong response, garnering interest from 8 parties.

The guide price for PIL Building was set at S$350 million, which reflects about S$3,265 per square foot based on the existing net lettable area of nearly 107,200 sq ft. The building was completed nearly 40 years ago but underwent a substantial revamp in 2011.