Acer Building in Jurong for sale
ACER Computer International is selling its building at International Business Park in Jurong East.
The property is said to be worth about $75-80 million, or $337 to $360 psf of existing net lettable area (NLA).
The property, a high- tech business park development, was completed about 10 years ago on a site leased from JTC Corp for 30 years with an option to renew for a further 30 years.
Acer is paying JTC an annual land rent of $715,469, with an escalation of 4 per cent a year (as at Q3 2007). Acer Building’s new owner will likely pay JTC a slightly higher land rent each year.
Acer Computer (Singapore) will lease back 51,548 sq ft in the building - about 23 per cent of the property’s 222,510 sq ft NLA - from the new owner.
BT understands that the net property yield to the new owner can work out to around 6 to 7 per cent, based on a $75-80 million price.
DTZ Debenham Tie Leung is marketing Acer Building through an expression of interest exercise.
Source : Business Times - 31 Oct 2007
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