Bright Ruby Resources buys Income At Raffles for slightly over S$1 billion

SINGAPORE-BASED Bright Ruby Resources group has emerged as the buyer of Income At Raffles at 16 Collyer Quay. The price is understood to have crossed S$1billion, reflecting slightly over S$3,600 per square foot on the net lettable area of 276,451 sq ft.

The 37-storey, 999-year leasehold office asset was sold by NTUC Income Insurance Co-operative in late June. This was an investment property for Income, which is being corporatised.

Bright Ruby Resources, controlled by a Du family from China, also owns Pullman Singapore Orchard, formerly the Grand Park Orchard.

JLL said on Friday (July 1) that it acted as lead advisor to Mercatus Strategic Investment Management LLP, the fund manager of NTUC Income, for the disposal of 100 per cent interest in Income At Raffles. It did not identify the buyer or state the price.

CBRE is understood to have introduced Bright Ruby Resources to the vendor.

Formerly known as Hitachi Tower, the property offers Marina Bay views and sheltered connectivity to Raffles Place MRT station via 30 Raffles Place (the former Chevron House). Income At Raffles’ NLA comprises 253,664 sq ft of offices and 22,787 sq ft of retail space (on Levels 1 and 2). The building also has 148 car parking lots in the basement levels. Its existing gross floor area (GFA) of 415,445 sq ft is 14 times the land area. There is untapped GFA of nearly 30,000 sq ft for the commercial-zoned site, which has 15.0 plot ratio under the Urban Redevelopment Authority’s (URA) latest Master Plan.

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The property was refurbished in 2019.

Income at Raffles was put on the market quietly through a closed expression of interest exercise that had its initial closing in early June. The exercise is said to have drawn some 10 bids. 3 parties were shortlisted to sharpen their pencils and who submitted their improved offers around mid-June. Besides Bright Ruby Resources, the other 2 shortlisted parties were Indonesian tycoon Sukanto Tanoto of Royal Golden Eagle (RGE) group; and a tie-up between City Developments and BlackRock.

The Singapore office investment market has been buzzing this year. Sun Venture is selling Westgate Tower near Jurong East MRT station to AEW for S$680 million. In turn, Sun Venture is in exclusive due diligence to buy the recently spruced up Bugis Junction Towers.