Le mie ricette per la real estate communityAllianz today announced that it has signed a definitive agreement to acquire a 20% stake in Ocean Financial Centre (“OFC”), a 43-storey, Grade-A office tower located strategically at the intersection of Raffles Place and Marina Bay financial precincts in Singapore. The agreed sales price is approximately SGD537 million. The transaction is subject to closing in December 2018.
Keppel REIT currently owns a 99.9% interest in OFC. The property was built in 2011 by Keppel Land and designed by Pelli Clarke Pelli Architects. The property has a leasehold interest of 99 years expiring in 2110. The property offers approximately 861,000 square feet of international, premium grade-A office space and approximately 16,000 square feet of retail space. The floor plates are 20,000-22,000 square feet and column-free. For its efforts in sustainability, Ocean Financial Centre was recognized with the Green Mark Platinum Award and Green Mark Pearl Award in 2016 by the Building and Construction Authority of Singapore.
The transaction was conducted by Allianz Real Estate, the EUR 60 billion real estate investment and asset manager of the Allianz Group, on behalf of several Allianz companies. This investment is part of Allianz strategy to allocate 5 to 10%of its real estate exposure to Asia-Pacific.
“This transaction is aligned with our approach of creating a portfolio of core assets in 24×7 cities. The Singapore office market is experiencing strong rental growth. From an occupational cost and efficiency perspective, it continues to be favorable vis- à -vis comparable markets like Hong Kong,” said Rushabh Desai, CEO Asia-Pacific at Allianz Real Estate. “We are excited to invest in this iconic building in Singapore. Together with Keppel REIT, we will work towards our common objective of securing long-term yield for our investors. We are confident that the property will outperform the market, owing to its prime location, superior quality and best-in-class asset management. This strategic partnership will also put us in good stead as we look towards exploring future collaborations.”
Tan Swee Yiow, CEO of Keppel REIT Management Limited, said, “Ocean Financial Centre is a sterling office development that is strategically positioned to capture value from the strengthening Singapore office market. With its premium facilities, green features and tenant-centric amenities and service offering, we are confident that Ocean Financial Centre will continue to be valued by tenants. We are happy to have found a like-minded partner like Allianz and look forward to forging a long-term partnership to drive greater returns for both Allianz’s and Keppel REIT’s investors.”
Source : Company