Cycle & Carriage Singapore sells Mercedes-Benz Centre and three other properties for S$333 million

Mar 06, 2023

AUTOMOTIVE group Cycle & Carriage Singapore has completed the sale of four of its properties to M&G Real Estate for a total of S$333 million, based on caveats lodged with the Urban Redevelopment Authority.

It was reported in October 2022 that the four properties, which include the Mercedes-Benz Centre – the first facility of its kind outside Europe – at 301 Alexandra Road, and Jardine Cycle & Carriage (Jardine C&C) headquarters at 239 and 241 Alexandra Road, were to be sold for an undisclosed sum, and be leased back at S$26 million per annum, for at least 10 years.

The other two properties are the Mercedes-Benz commercial vehicle showroom at 209 Pandan Gardens and the Mercedes-Benz service centre for passenger and heavy commercial vehicles at 188 Pandan Loop.

Cycle & Carriage Singapore is owned by Jardine C&C, an investment holding company listed on the Singapore Exchange. In its latest financial statements for the year ended Dec 31, 2022, Jardine C&C said: “Cycle & Carriage Singapore completed a sale and leaseback arrangement of its properties for US$230 million” in February 2023.

The biggest price tag was for Jardine C&C’s four-storey regional headquarters at S$142 million, or S$1,320 per square foot (psf) for the 107,611 square foot (sq ft) site. The land is on a 99-year tenure from Mar 19, 1956.

The second is for the Mercedes-Benz Centre at S$131 million, or S$1,308 psf for the 100,183 sq ft site. Opened in 2006, the seven-storey facility is completely devoted to the German-car marque, including a showroom, workshop and office space. The land is on a 99-year lease from Jul 1, 1948.

The 319,342 sq ft site at Pandan Gardens sold for S$46 million, while the fourth at Pandan Loop sits on 213,150 sq ft of land and was sold for S$14 million.

UK-based asset manager M&G Real Estate’s purchase comes as it boosted its Asia-Pacific operations last year with senior hires and acquisitions in Singapore, South Korea and Japan.