Located on the second to ninth floors as well as on the thirteenth floor of the Marine Parade Central location’s Parkway Centre sits 51 strata-titled office units that were sold for a total of $53.375 million. The units comprise a little more than 51,000 square feet, and which places that sale at $1,045 per square foot.
The area known as Marine Parade’s Central District 15 is considered to be one of the most sought after areas due to the location and attraction of area businesses. With only a 15-20 minute drive to the city, the area boasts exceptional accessibility to adjacent locations, including the Central Business District, Changi Business Park, Marina Bay, and the Airport.
In addition, Central District 15 is known for its excellent schools like CHI Katong, Victoria School and Junior College, and Tao Nan. Some of the area’s most exciting and well-known attractions include Parkway Parade, a large suburban mall, and several beaches along the coast. Residents and business owners living in the area have access to all of the essential and high-end amenities.
Mukesh Valabhji and Kishore Buxani, real estate investor, are behind the purchase of Parkway Centre. They acquired the units from the Chiu family, natives of Hong Kong and former operators of the Tang Dynasty City attraction located in Jurong. The family also helped develop Dorsett Residences, which are close to the Outram Park MRT Station. Visit Mr. Valabhji’s Google Plus page to learn more about his business.
The units that Mr. Valabhji purchased make up for approximately 44% of the 13-story building, which has a total of 116,950 square feet of strata area. His purchase also makes up roughly 43% of the building’s share value. At one point, Mr. Valabhji and Buxani was open to the idea of selling the entire building as an en bloc sale, as long as the other building owners were in agreement. They hoped to gain some advice from reputable international real estate consultants regarding the best course of action. In the interim, they thought of ways to increase the market value of the building as a whole.
At the time of the sale, he planned to become increasingly involved with the building in order to discern a plan to upgrade the structure and enhance and improve the building’s value. The goal, according to Mr. Buxani, was to allow all owners to benefit from overall improvements.
When the sale took place, the 51 units that were purchased were at full occupancy, and the tenants comprised mostly of education and learning centers. At that time, a tenant could rent the space for roughly $4 to $4.80 per square foot, which equates to a new yield of approximately 4.2%.
Several other units at Parkway Centre changed hands around the same time as the 51-unit purchase, including a unit on the eighth floor, which sold for $1,320 per square foot, and another on the 13th floor, which sold for $1,327 per square foot. Parkway Centre offers significant appeal to owners and tenants due to the fact that it links to a large multi-story car park through a pedestrian bridge and is next to the Parkway Parade mall. In addition, some of the units on the top floors enjoy panoramic sea view. The building has a total of 107 office units above the ground level, which consists of three retail units.
At the time of purchase, Parkway Parade was priced just a bit over Parkway Centre, as Mr. Valabhji noted that the building was able to gross anywhere from $5.80-$6.70 per square foot each month, and asking sales prices were at $1,620-$1,750 per square foot.
The Parkway Centre units were purchased by Parkway Investment Holdings Pte Ltd, which is a company that Mr. Buxani owns in conjunction Mukesh Valabhji of Seychelles-based Capital Management Group.
This is not the only business venture that Mr. Buxani and Mukesh have partnered on. In addition to Parkway Centre, their two companies have acquired several other properties, including Finexis Building, which was previously known as the GMG Building. They purchased that particular property at 108 Robinson Road in 2006 for as much as $48 million. Subsequently, they invested an additional $6 million into the property. Finexis Building is comprised of roughly 53,830 square feet of total strata area.
In addition, Mr. Buxani and Mukesh Valabhji purchased six floors at Samsung Hub, located at Church Street. The 999 –year–leasehold office was purchased from OCBC properties in 2007 for $1,560 per square foot. The two turned around the sold one of the floors of the same property to a Chinese investor for $2,800 per square foot.
Find out about Mukesh Valabhji’s latest investment in the Katong Junction sale.