LaSalle, Elevate Buying Singapore Building From Raffles Education for $94M

Raffles Education has agreed to sell a commercial building in Singapore’s Clarke Quay area for S$121.8 million ($94 million), with market sources confirming a joint venture of LaSalle Investment Management and Elevate Capital Group as the buyer.

The private school operator is offloading Raffles Education Square at 51 Merchant Road as part of efforts to optimise the company’s balance sheet and capital structure, according to a filing with the Singapore Exchange. The deal enables the full extinguishment of the property’s associated loan, the company said.

The transaction price represents a premium of S$53 million to the book value of the property, said Raffles Education, which expects to reap net proceeds of S$121.3 million from the sale.

“The released capital will be strategically redeployed to bolster working capital and fund higher-yielding initiatives, transforming a non-income-generating asset into flexible liquidity to drive operational priorities and strategic growth,” the company said.

College Clears Out

Raffles Education Square comprises a main four-storey commercial building with two levels of basement carpark annexed to two rows of conserved buildings. The property sits on 2,571 square metres of land with a lease expiring in 2092 and provides 6,606 square metres (71,106 square feet) of gross floor area.

Raffles Education first put the asset on the market in 2021 for S$200 million and two years later offered the property for sale again at the same guide price.

Knight Frank noted at the time of the second sale campaign that the 1996-vintage property was vacant following the relocation of the corporate office and college campus previously housed there.

The LaSalle-Elevate venture’s acquisition price for Raffles Education Square translates to S$1,713 ($1,322) per square foot of gross floor area, but the asset has redevelopment potential in line with nearby projects such as CDL’s under-construction Union Square mixed-use complex.

Follow-Up to Stamford Court

Completion of the deal, expected by the end of January, will give locally based private equity startup Elevate its second property investment in the Lion City.

Elevate joined forces with PGIM Real Estate last year to acquire the Stamford Court commercial building near City Hall for S$132 million (then $99.9 million). The JV is rejuvenating the four-storey retail and office property opposite Singapore Management University “into a fresh living, co-working and lifestyle destination”.

The renamed Stamford Place is scheduled to open in the third quarter of 2026 as a mixed-use property with serviced apartments, co-working operated by The Great Room and ground-floor restaurants.