Lendlease and Certis have put their recently completed Paya Lebar Green office project up for sale, having secured Visa as an anchor tenant for more than 200,000 square feet (sq ft).

The building’s net lettable area (NLA) of about 335,000 sq ft is now fully leased.

The Business Times understands that CBRE and Savills have been appointed as joint marketing agents. A closed expression of interest (EOI) exercise is ongoing, and prospective buyers are expected to make submissions by around mid-November.

The asking price is understood to be close to S$600 million or S$1,800 per square foot on NLA.

The net yield works out to nearly 4.5 per cent; this reflects the balance site lease of about 48 years for the Paya Lebar Green site. Industry observers noted that, in contrast, property yields for Singapore office assets on freehold and long-balance-leasehold sites would typically be lower, at around 3 to 3.5 per cent.

Paya Lebar Green may appeal to institutional players looking for a core investment secured by stable income on a long-term basis.

A purchase would come with a fully leased asset.

The two biggest occupiers, Visa and Certis, are blue-chip names and together account for more than 80 per cent of the property’s NLA. They are committed to be long-term occupiers in the property.

Paya Lebar Green’s sustainability credentials – including the Building and Construction Authority’s Green Mark Platinum Super Low Energy certification – would be another plus point for prospective buyers conscious of environmental, social and governance factors.

Located about 400 metres from the Paya Lebar interchange MRT station, the property is on a site that is zoned commercial with 3.0 plot ratio – the ratio of maximum gross floor area to site area – under the Urban Redevelopment Authority’s Draft Master Plan 2025.

The project was jointly developed by real estate group Lendlease and security solutions provider Certis, on a site previously occupied by Certis’ ageing headquarters.

A property ownership search shows that the lease for the site will end in May 2073, leaving a balance term of about 48 years.

Paya Lebar Green, which broke ground in late 2022, comprises two buildings: a brand-new 12-storey South tower (the bulk of which has been leased to Visa) and the refurbished eight-storey North tower.

Certis’ global headquarters is in the North tower. The group is understood to be occupying close to 60,000 sq ft, which it is expected to lease back in the event of a sale.

An educational institution will occupy about 35,000 sq ft in the same block.

L-Acoustics has leased about 10,000 sq ft in the South tower.

Visa is expected to move into Paya Lebar Green sometime in the first half of next year from the nearby SingPost Centre.

Paya Lebar Green received its Temporary Occupation Permit in the first quarter of this year. Located at 1 Eunos Road 8, the project is part of the rejuvenation of the Paya Lebar precinct.

The location used to have a mostly industrial and residential character, before the completion of projects such as Paya Lebar Square, the mixed-use PLQ and a redevelopment of the retail mall at SingPost Centre transformed the location into a commercial and lifestyle hub.