PoMo, the nine-storey development located at 1 Selegie Road which has a mix of offices and retail shops (Picture Credit: CBRE)
A special purpose vehicle of a fund managed by Hong Kong-based private equity group Gaw Capital Partners is purchasing PoMo, a nine-storey office and retail development at Selegie Road for $342 million.
The sale of PoMo is based as a sale of shares by Enviro-Hub Holdings and BS Capital in a 51:49 joint venture company F2S1, which owns the asset. BS Capital is a private real estate company founded in 2003 by Raymond Ng Ah Hua who is also the controlling shareholder and executive chairman of Envir0-Hub. The sale was brokered by CBRE.
Located at No. 1 Selegie Road near Bencoolen and Dhoby Ghaut MRT stations, PoMo sits on a land area of 43,027 sq ft. It has a 99-year lease starting from March 17, 1983.
The development has a gross floor area of almost 235,000 sq ft. Of the net lettable area of about 180,000 sq ft, about 110,000 sq ft is made up of offices, with another 70,000 sq ft of retail space. The offices are fully leased, while the retail space is said to be about 85% leased.
Enviro-Hub is expecting to receive net proceeds of $335 million from the sale. Enviro-Hub and BS Capital purchased the building in 2013 for $336 million from CLSA Capital Partners, which had completed a $10 million refurbishment of the building. CLSA Capital Partners had in turn, purchased the property from Lendlease and Silverpeak Real Estate Partners in 2011 for $255 million.
Lendlease and Silverpeak had purchased the mixed-use development at the corner of Selegie Road in 2006 when it formerly known as Paradiz Centre. The building was then refurbished and rebranded PoMo a year later.
The latest sale to Gaw Capital marks the fourth time the building has changed hands in just over a decade.
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