Including the retail units, the property has a gross floor area of around 248,902 sq ft. It sits on a land parcel with a 30-year leasehold tenure starting from 1 February 2010, with an option for a 30-year extension. Image: Google Street View

A Lian Beng Group-led consortium is acquiring the BreadTalk IHQ Building at 30 Tai Seng Street from BreadTalk Group for $118 million.

Lian Beng, via its wholly owned subsidiary, holds a 75% direct stake in the consortium, while its partners – Apricot Capital and 32RE Investments – own 20% and 5%, respectively.

BreadTalk has committed to lease back the development as an anchor tenant for 10 years.

In an SGX filing, Lian Beng revealed that BreadTalk has the option to “either buy back the property by the end of the initial lease term at a price mutually agreed by both parties, or extend its lease by a further five years at the prevailing market rent”.

It noted that the completion of the acquisition “is conditional upon the approval of JTC Corporation”.

Located within the Tai Seng industrial precinct, BreadTalk IHQ Building is a 10-storey, single-user industrial development that comes with a retail component.

Including the retail units, the property has a gross floor area of around 248,902 sq ft. It sits on a land parcel with a 30-year leasehold tenure starting from 1 February 2010, with an option for a 30-year extension.

The property is designed by local architect Tan Kay Ngee and serves as the international headquarters of BreadTalk Group, housing its corporate offices, warehouse spaces, flagship retail brands as well as central and test kitchens. Other third-party tenants also occupy the development.

Situated near Tai Seng MRT station, the property faces Macpherson Road and Upper Paya Lebar Road.

“The acquisition will extend our investment footprint in industrial real estate and help to diversify our property portfolio. BreadTalk Group’s lease commitment and the property’s strategic location should enable us to yield positive rental returns from this investment in addition to potential capital appreciation over the longer term,” said Ong Pang Aik, Chairman and Managing Director of Lian Beng Group.

Source: 18 Jan 2021, CommercialGuru