United Engineers' announcement before the start of stockmarket trading yesterday that it is acquiring 79 Anson Road for $410 million sent the counter to its highest level in more than four years.
It rocketed 18 cents or 6.2 per cent from its Friday close to end at $3.09 on tuesday, after touching a high of $3.11 in the morning.
In its announcement to Singapore Exchange, UE said it plans to rename the 23-storey freehold office tower to UE BizHub Tower - subject to approval from the authorities.
UE is buying the building from its two owners - Singapore's Central Provident Fund Board and German fund manager SEB.
CBRE brokered the transaction.
UE's acquisition price amounts to $2,029 per square foot (psf) based on the building's net lettable area (NLA) of 202,092 sq ft.
This will be UE's first commercial property in Singapore's Central Business District.
It will enhance the group's strategy of building a stable base of rental income to help smoothen fluctuating development profits.
The group is involved in engineering, construction and property.
With a strong tenant base and high occupancy, 79 Anson Road will provide UE with stable rental income with upside potential in rental rates.