Shipbuilder Yangzijiang acquires office building at 39 Robinson Road for $399 mil

!Yangzijiang Realty expects to complete the proposed acquisition of 39 Robinson Road by the first half of 2021.

In a strategic move to further deepen its roots in Singapore, Yangzijiang, a Singapore-listed shipbuilding group, has entered a share purchase agreement to acquire a 100% stake of 39 Robinson Road which is located in the Central Business District.The acquisition, which was done via Yangzijiang Realty – an entity owned 81% by Yangzijiang, 10% by 9Co Parker and 9% by ICH Investments, has a purchase price of $399 million, translating to $2,357 psqf based on gross floor area of 169,252 sq. ft.

According to Ren Letian, executive chairman and CEO of Yangzijiang, this acquisition is a good way to “preserve existing capital over the long term while also providing us stable rental cash flow”. Furthermore, this is viewed as a one-time exercise, with the primary focus remaining the core shipbuilding business.

The office building is to be managed by a professional real estate manager with the aim of “branding it as a financial hub to attract tenant profiles like institutional investors and family offices”, says Ren.

The proposed acquisition of 39 Robinson Road is expected to be completed in the first half of 2021.

Envisioned as a financial hub, 39 Robinson Road provides an opportunity for Yangzijiang to take its presence in Singapore even further. Being a STI index component company, the acquisition is a prudent move to capitalise on the highly inflationary environment and maintain stable rental cash flow.

Under the guidance of a professional real estate manager, 39 Robinson Road is expected to rate highly amongst institutional investors and family offices alike. Currently, it is estimated that the purchase price stands at $2,357 psqf based on the gross floor area of 169,252 sq. ft.

The takeover of 39 Robinson Road will be a significant milestone for Yangzijiang Group as they continue to pave a beneficial presence in Singapore. The closing of the deal is anticipated in the first half of 2021.