An entity understood to be linked to the family of the controlling shareholders of the Haidilao hotpot chain empire is said to be the new owner of 21 Collyer Quay, which was sold earlier this month for S$688 million.

The Haidilao business was started by the husband-and-wife team of Zhang Yong and Shu Ping, along with two others: Shi Yonghong, also known as Sean Shi, and Li Haiyan.

Zhang and Shu have a controlling interest in Haidilao International Holding and Super Hi International Holding, both listed on the Hong Kong bourse. In 2019, Shu set up a family office in Singapore, Sunrise Capital Management. She is the sole shareholder and also a director of the company.

BT’s attempts to reach out to Zhang and the family office were not successful.

CapitaLand Integrated Commercial Trust (CICT) announced the sale of 21 Collyer Quay for S$688 million on Nov 12, 2024, a day after the deal was completed.

However, the buyer was not identified, with the CICT announcement stating only that it is an “unrelated third party”.

"The property has been seen as a trophy asset; and over the years, many parties had wanted to acquire it." - GALVEN TAN OF KNIGHT FRANK SINGAPORE

The sale price works out to about S$3,230 per square foot (psf) on the 213,000 sq ft net lettable area (NLA). Located in the prime Raffles Place office district, the 21-storey building has 999-year leasehold tenure.

Based on the annualised net property income for the period ended Sep 30, 2024, the price reflects an exit yield of below 3.5 per cent, CICT’s manager said in its announcement.

CICT acquired the property in 2005 from HSBC under a sale-and-leaseback arrangement. Ahead of HSBC’s lease expiry in April 2020, CICT found WeWork as the replacement tenant.

The flexible workspace provider’s seven-year lease began in December 2021, following a S$45 million renovation of the building.

The price achieved is lower than S$3,900 psf to S$4,000 psf – translating to S$830 million to S$850 million – CICT was said to have been eyeing previously.

The Zhang family has also bought at least two properties in Singapore’s Good Class Bungalow Areas over the years. In 2016, Zhang acquired a then-four year old bungalow in Gallop Road for S$27 million. In early 2021, his son, then in his early 20s, picked up the property next door, an old bungalow ripe for redevelopment, for S$42 million.

Analysts have previously noted that 21 Collyer Quay’s development potential has been fully tapped. The building’s existing gross floor area (GFA) slightly exceeds the maximum allowed based on the 15.0 plot ratio designated for the commercial-zoned site under the Urban Redevelopment Authority’s latest Master Plan.

The nearby Collyer Quay Centre – a 999-year leasehold property at 16 Collyer Quay formerly known as Income At Raffles – transacted for S$1 billion in late-June 2022. The price paid by Bright Ruby Resources, controlled by Chinese billionaire Du Shuanghua, worked out to S$3,617 psf on NLA.

Observers noted that the 16 Collyer Quay building is a relatively newer property than 21 Collyer Quay, which was built in the early 1980s. It is also taller, at 37 storeys.

Gross floor area already maximised

Galven Tan, chief executive officer of Knight Frank Singapore, described the S$3,230 psf fetched for 21 Collyer Quay as a “good price”.

“The property has been seen as a trophy asset; and over the years, many parties had wanted to acquire it,” he added. “Notwithstanding that its GFA has been maximised, 21 Collyer Quay features on the Singapore CBD skyline. Another attraction is the long land tenure akin to freehold.”

Agreeing, Savills Singapore executive director of research and consultancy, Alan Cheong, said: “The appeal of assets like 21 Collyer Quay is not in the property yield but a prestigious location with unblocked views of the Marina Bay area, and 999-year/freehold tenure.”