Savills has advised Deka Immobilien in its acquisition of an office building in the heart of Singapore's Central Business District. Deka bought Chevron House from Goldman Sachs for approximately US$420 million (311 million). The 262,650 ft² (24,400 m²) building comprises a four-story retail podium with a basement that links directly to the Raffles Place MRT Station and a prime 29-story office tower.
"The transaction reflects a 30% discount from the peak pricing of 2007 and prime rental levels remain approximately 50% below their peak in 2007. Combined with the exceptional growth of the Singapore economy during 2010, we expect continued office rental growth in the short to medium term which will impact positively on capital values and indeed the income performance of Chevron House," said Craig Ward, Director of Investment, Regional Capital Markets, Savills Singapore.
"The office market here has seen a steady recovery since the second quarter of this year. Singapore's economic fundamentals remain attractive and the quest to be an Asian hub is becoming reality. Investors support this view and their appetite has increased significantly over the past couple of months, with the team working with a number of investors who are searching for assets ranging from US$50 million to $500 million," said Christopher J Marriott, CEO Savills Southeast Asia.