PGIM JV Confirms $99.9M Stamford Court Buy for Singapore Value-Add Project

PGIM Real Estate on Monday announced its purchase of the Stamford Court commercial building near Singapore’s City Hall for S$132 million ($99.9 million) in a joint venture with private equity startup Elevate Capital Group, confirming a Mingtiandi report from August.

The JV plans to rejuvenate the four-storey retail and office property opposite Singapore Management University “into a fresh living, co-working and lifestyle destination”, US investment manager PGIM said in a release. The acquisition of Stamford Court from SGX-listed Singapore Land marks the maiden investment of Elevate, a locally based company focused on lifestyle-led projects.

Investors are seeking value-add opportunities with strong income potential as the global real estate market reaches an inflection point, said Fiona Cho, chief operating officer for Asia Pacific and senior portfolio manager at PGIM Real Estate.

“The ongoing demand for high-quality office, living, and retail space against the backdrop of limited supply, rising occupancy rates, and strong rental growth prospects in Singapore present what we believe to be a compelling investment case for Stamford Court,” Cho said. “Together with Elevate, we look forward to transforming the asset and activating a vibrant community at the heart of the city while delivering sustainable income for our investors.”

Neighbourhood Renewal

Providing 62,900 square feet (5,844 square metres) of net lettable area, Stamford Court is located at the intersection of Stamford Road and Hill Street in Singapore’s Civic District, with the transaction valuing the property at the equivalent of S$2,099 per square foot. PGIM Real Estate made its investment on behalf of its Asia core-plus strategy.

SingLand, a unit of development heavyweight UOL, had won the Stamford Court site at a government land sale in 1993 with the 99-year leasehold property having more than 68 years remaining on its tenure. The disposal price represents a more than 17 percent premium to an independent S$109.5 million valuation of Stamford Court as of 30 June, according to SingLand.

The Stamford Court project will showcase Elevate’s capability to reimagine traditional uses of real estate, said managing partner Ashish Manchharam, who founded and led Singapore-based 8M before selling the shophouse specialist to Crane Capital last year for an undisclosed sum.

“We are committed to enhancing the immediate neighbourhood and the historic Civic District by working with the authorities to deliver a restored mixed-use asset to house a curated array of retail and F&B offerings, whilst addressing the future of work and urban living in Singapore,” Manchharam said.

Selling in City Hall

SingLand announced its sale of Stamford Court in August after reporting that first-half net profit fell 38 percent year-on-year to S$103.7 million. The decline was largely due to a slide in fair value gain from the company’s investment properties, which fell to S$5.3 million in the first half from S$93.5 million a year earlier.

Elsewhere in the City Hall area, Perennial Holdings has put the retail, hotel and theatre elements of its Capitol Singapore complex on the market at an asking price of S$650 million, according to sources who spoke with Mingtiandi in August.

Spanning a total of 244,500 square feet, the properties on offer include the Capitol Kempinski Hotel, the Capitol Theatre and an adjoining retail arcade, all of which are conservation buildings. The marketing of the properties was first reported by the Business Times.

Note: This story has been updated to show the correct name of Elevate Capital Group. An earlier version referred to the company as Elevate Capital Partners. Mingtiandi regrets the error.