In January 2014 a 50% stake in the Finexis Building, Singapore, was sold to an offshore fund managed by Sin Capital Partners for $2,300 per square foot on strata area. The deal on half of the 12-storey building, located at 108 Robinson Road, was based on the value of the building at $123.8 million. This latest deal follows the previous sale of the other half stake in the building in 2011 to another offshore fund managed by Sin Capital Partners, at which point the building was valued at $110 million.
Prior to the two 50% sales the entire building was owned by a partnership between Kishore Buxani and investors advised by Mukesh Valabhji of Capital Management Group. Both deals took place through sales of shares in Robinson Land Pte Ltd, the company that owns the Finexis Building as its sole asset.
The partnership that owned the whole of the Finexis Building from 2006 to 2011 is comprised of Kishore Buxani, an ex-banker who worked with Goldman Sachs for almost a decade before leaving to explore commercial real estate investment in Singapore, and a group of investors advised by Capital Management Group under Seychellois Mukesh. The Buxani-CMG partnership has invested in several commercial properties in the central Singapore business district in recent years, including six floors of the Samsung Hub building, a 999-year freehold building on Church Street close to Raffles Place, and strata office units located in the Parkway Centre in Marine Parade Central. At the time of the current Finexis deal, Buxani-CMG had also sold three of the six Samsung Hub floors.
Valabhji has numerous business interests across the world, from investing in commercial and resort properties to owning a cable television network. Mukesh Valabhji videos can be found online, detailing some of these current interests. Buxani focuses almost exclusively on the Singapore commercial real estate market. Buxani-CMG’s recent business activity includes the purchase of the four-storey commercial property Katong Junction, a freehold property with acquired planning permission for additions and alterations works that will be divided into 57 commercial units. These will include food and beverage units on level one, retail outlets on levels one, two and three, and commercial office space on level four. The property also includes 29 basement car park lots.
Sin Capital Partners
The real estate and investment firm Sin Capital Partners was established by David Sin with a view to sourcing investment opportunities in companies and assets throughout Singapore and wider Asia. David Sin comes from a strong financial background, having previously worked with both Goldman Sachs and AIG in Hong Kong and London. It is thought that the two offshore funds currently controlling the Finexis Building are comprised of a select few high net worth investors.
Finexis Building, Robinson Road
The Finexis Building is situated at 108 Robinson Road, in the heart of the Singapore central business district. A major trunk road, Robinson Road was converted into a one-way street and widened during urban reconstruction and development to accommodate huge traffic flow. Today the road is flanked on either side by skyscrapers and lends its name to several buildings in the vicinity, including Robinson Point and Robinson Centre. Valued at $123.8 million at the time of the latest deal, the Finexis Building is around 96% let, reflecting a net rental yield of just over 2%. The lease of five floors of the building by anchor tenants Finexis Advisory, comprising almost 24,000 square feet, is thought to have been recently renewed. Other existing tenants include two Australian firms, Box Hill Institute and Cliftons.
Singapore Central Business District
Strategically located and with links to nearly all major Asian markets, Singapore is a favourite choice with today’s investors, businesses and entrepreneurs looking to enter or expand into the Asia-Pacific region in order to establish a global business presence. The Finexis Building offers premium Grade-A office space only minutes away from the Tanjong Pangar MRT Station and Raffles Place.
Originally known as Commercial Square, Raffles Place was renamed in 1858 in honour of Sir Stamford Raffles, founder of modern Singapore. In the 1820s Raffles decided that Singapore had the potential to become a great commercial emporium, and Commercial Square was at the heart of his plans to make this happen. Since this time the central business district of Singapore has undergone almost constant commercial development and today it is home to numerous skyscrapers, banks, financial organisations and other businesses.