Lum Chang In Venture To Develop Anson Site

Source : The Straits Times, Nov 7, 2007

JOINT OFFICE-TOWER PROJECT

A PROPERTY fund that won the tender for a leasehold office plot on Anson Road has roped in construction group Lum Chang Holdings to jointly develop the site.

Lum Chang will take a 5 per cent stake in Firstoffice, a vehicle set up to develop the land.

The remaining 95 per cent is held by Homerun 28, a wholly-owned subsidiary of LaSalle Asia Opportunity Fund III.

The total development cost, including the land, is estimated at $379.2 million.

Lum Chang has been appointed the main contractor for the $82.5 million contract to build a 20-storey office tower on the land next to International Plaza.

When completed by end-2009, the 99-year leasehold property is expected to yield 200,208 sq ft of net lettable office space and 1,668 sq ft of carpark space.

Given the rising demand and shortage of prime office space, the project is expected to draw keen interest from multinational tenants looking for Grade A offices near the Tanjong Pagar MRT station, said Lum Chang in a statement.

LaSalle won the tender with a top offer of $237.2 million in a government tender in August.

The Anson Road site is the maiden Singapore investment for LaSalle Asia Opportunity Fund III, which is planning to make about $12US billion ($17S.4 billion) worth of acquisitions over the next three to four years. The fund is part of the Jones Lang LaSalle group.