Shipbuilder Yangzijiang acquires office building at 39 Robinson Road for $399 mil

, hereYangzijiang Realty has also entered into a sale and purchase agreement with another third party to grant it the right to repurchase all of the shares held by the two joint venture partners at a repurchase price to be determined within a certain time period.

Singapore-listed shipbuilding group Yangzijiang and its affiliates have just announced their acquisition of a 100% stake in the office block at 39 Robinson Road in the CBD. The purchase price for the 21-storey building, which has a gross floor area of 169,252 sq ft, was an impressive $399 million, or $2,357 psf.

The company made the purchase via its 81%-owned entity, Yangzijiang Realty. The remaining 19% was split between real estate company 9Co Parker and boutique investment firm ICH Singapore Holdings.

Ren Letian, executive chairman and CEO of Yangzijiang, commented that this acquisition reflects their commitment to Singapore, as a listed mainboard firm and an STI index component. Additionally, Ren sees this as a good way to preserve capital over the long term whilst also providing stable rental cash flow.

JCUBE will close in August to make way for a 40-storey residential and commercial development, JCube Condo Residence, estimated to have a S$2,000-2,100psf price tag. It is slated for completion in 2027 and will bring new homes, businesses, JCube Residence recreational facilities and amenities to the Jurong Lake District.

In light of this purchase, the company intends to appoint a professional real estate manager to market and manage the property, aiming to brand it as a financial hub for institutional investors and family offices.

Yangzijiang Realty has also entered into a sale and purchase agreement with a third party to repurchase the shares held by the two joint venture partners. The repurchase price will be determined within a certain time period.

This move is seen as a one-off exercise, with Yangzijiang’s focus still firmly on its core shipbuilding business. The acquisition of 39 Robinson Road provides them with an opportunity to deepen their roots in Singapore, whilst taking advantage of the highly inflationary environment.