The Boss Of SunCo Cooking Oil Producer Conglomerate Bachtiar Karim Buys Historic House In Singapore For Nearly IDR 1 Trillion

The historical house of Tan Yeok Nee at 101 Penang Road Singapore. (Photo: Doc. Savills)

JAKARTA - The conglomerate from Medan who is the boss of the Musim Mas Group, Bachtiar Karim, bought the historic house of Tan Yeok Nee at 101 Penang Road, Singapore at an estimated price of almost Rp. 1 trillion.

Savills Singapore, the exclusive marketing agent in the property transaction, in a written statement, quoted Friday, March 4, did not specify the transaction value for the house purchase. However, according to market sources written by real estate website EdgeProp, the property price is in the range of S$85 million (Rp899.55 billion) to S$88 million (Rp931.31 billion).

Bachtiar Karim is leading the palm oil company, Musim Mas Holdings. The producer of SunCo branded cooking oil was founded by his father, Anwar Karim, in 1932 in Medan. Musim Mas Group is now headquartered in Singapore.

Tan Yeok Nee's historic home was put up for sale in May 2018 for an indicative price of at least S$93 million, or approximately S$1590 per ft2 based on a 58,480 ft2 strata area. However, the property was unable to secure a buyer at the time.

Then it will be marketed again in October 2021 with an indicative guide price of 92 million Singapore dollars. According to a press release by Savills Singapore, the sale process of the commercial property with the title status is expected to be completed in May this year.

Senior Director Investment Sales & Capital Markets at Savills Singapore, Yap Hui Yee, said that the market response for House of Tan Yeok Nee was overwhelming with it receiving inquiries from many new buyers from China, Indonesia, Hong Kong, India and South Korea.

Yap added that there is strong demand for legacy commercial assets in Singapore. House of Tan Yeok Nee is jointly owned by Perennial Holdings and Charles Quay International. According to the press release, the buyer is an entity related to the Bachtiar Karim family.

"The divestment of House of Tan Yeok Nee, along with our partners, is part of our active capital recycling strategy. We are delighted that the iconic legacy asset will write its next chapter of ownership with a reputable family befitting its status," said Senior General Manager Investment Management & Assets (Singapore) of Perennial Holdings, Yeoh Szu Wooi.

This property is one of 73 buildings in Singapore designated as a National Monument. Of this exclusive building group, only nine are categorized as commercial and five of these commercial buildings are in private hands. The house once belonged to Tan Yeok Nee, a businessman born in Chaozhou, Guangdong, China, who built it in 1885.

From 2000 to 2015 the building was used as the campus of the University of Chicago Booth School of Business for the Asian Region before they moved to Hong Kong.

This historic property was also awarded the Architectural Heritage Award in 2001 by the Urban Redevelopment Council, and won special recognition at the FIABCI (International Real Estate Federation) Prix d'Excellence Awards in 2002 in recognition of its sensitive restoration in 2000.

Chayadi Karim, a spokesman for the buyers, said Tan Yeok Nee's house is an important asset with enduring appeal and enduring value.

"Our family hopes to value its long and precious history and are currently exploring various investment strategies for the modern generation to enjoy this conservation wonder," said Chayadi.