Fine Grain Property, a fund composed of Irish investors, has acquired its first property in Singapore for S$58 million ($42 million, €27 million).
The property, located at 700 Beach Road near the city's central business district, has a lettable area of 52,000 square feet (4,830 square meters). Fine Grain will upgrade 700 Beach Road in conjunction with interior design firm Hirsch Bedner Associates. The firm anticipates that the building will be ready for occupation in August 2008.
This is the consortium’s first purchase since it raised €30 million ($48 million) in equity from Irish and Singaporean investors late last year. The fund is targeting Singapore’s second-tier properties, planning to redevelop and refurbish them for resale. The firm is also pursuing in-fill development. The fund is targeting an 18 percent annual return over the fund’s lifespan, which should be five to seven years.
Ron Bolger, who is chairing the fund, was formerly a KPMG managing partner in Ireland and also in Asia Pacific.
German bank Hypo Real Estate provided debt for the acquisition.