Guess how much was the biggest office investment deal in 2013

TripleOne Somerset ended the year with a bang.

According to Savills, the S$970 million sale of TripleOne Somerset in late December was the biggest office investment deal in 2013. 

Located opposite Somerset MRT Station, the 17-storey property with a balance lease term of about 61 years was sold to a consortium led by Perennial Real Estate Holdings for S$1,714 per sq ft based on its net lettable area of around 566,000 sq ft.

Here's more from Savills:

The strata sales market saw record prices set once again. In October, the 41st level of Suntec City Tower Three was sold for S$3,000 per sq ft. Later in November, three levels (25th to 27th) of Springleaf Tower were transacted for S$2,400 per sq ft.

Capital values of Grade A offices edged up 1.1% from S$2,750 per sq ft in Q3/2013 to S$2,780 per sq ft in Q4/2013. On a yearly basis, capital values were up by 9.0% from S$2,550 per sq ft in Q4/2012.

Hefty price tags have outpaced the moderately improving rents, causing yields to compress further in the last few quarters.