2 Havelock Road up for sale for $302mn

AEW, the seller, has carried out an extensive refurbishment by increasing its NLA by about 20 percent.

According to DBS, 2 Havelock Road along North Bridge Road has been put up for sale for $302m or $1,700psf, based on the existing NLA of about 177,833sf (80% office, 20% retail). The seller, US property fund manager AEW paid $205m in 2007 and has carried out an extensive refurbishment by increasing its NLA by about 20%. The 8-storey building has a remaining land lease of about 71 years.

The building is 92% committed and its major tenant is Estee Lauder, which occupies 35% of the office space. Recent office lease in the building was at $7 psf a month. However, DBS thinks that the average building gross rent should be closer to S$5 psf a month, which would translate to a gross yield of about 3.5% for the building.