#Blackstone buys #StarHub business park in first Singapore deal

US-based private equity giant Blackstone Group is said to have made its first major property acquisition in Singapore. It has bought StarHub Green along Ubi Avenue 1 for $210 million from German fund manager SEB.

The building, near MacPherson MRT Station, comprises two towers (six and seven storeys) and is on a site with a remaining lease of about 45 years. The plot is zoned for Business 1 use and its current gross floor area is built up to the maximum 2.5 plot ratio allowed for the site under Master Plan 2008. StarHub Green has 470 car park lots.

The pricing is said to reflect a net yield in the 5-6 per cent range and works out to about $500-550 per square foot on net lettable area (NLA). The lower psf price is based on the building’s maximum NLA of around 421,000 sq ft assuming there is one occupier per floor. More than 90 per cent of the building is let.

Boustead was the original developer for the project, which it built on a site clinched at a state tender in 1997. It later sold the completed project to SEB.

StarHub occupies slightly over half of the space in the building. Other tenants include Unisteel Technology, Quest Laboratories, Boustead Singapore and Cherie Hearts, which runs a child care centre in the premises.

The sale of StarHub Green is understood to have been brokered through a private treaty deal handled by Colliers International.

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