A consortium led by Perennial Real Estate Holdings (PREH) has acquired AXA Tower in downtown Singapore for S$1.17 billion.
The 50-storey office tower with some retail space has a total net rental area of about 674,000sq-ft. This translates the acquisition price to about S$1,735sq-ft.
Located within the Central Business District near Tanjong Pagar MRT station, AXA Tower has a total Gross Floor Area (GFA) of about 1.03 million sq ft. The building currently has an unutilised plot ratio that translates to an additional GFA of over 212,000 sq ft.
In a statement on Friday (Jan 30), PREH said that it will invest about S$117.9 million for a 31.2 per cent equity stake in the building. Another investor, HPRY1 Holdings, a shareholder of PREH, will hold a 10.1 per cent interest in the tower.
PREH’s chief executive officer, Mr Pua Seck Guan, said the “significant investment in the iconic operating asset not only strengthens the Group’s foothold in Singapore, but also provides the Group with an additional stream of stable income.”
He added that “the prime asset presents a unique opportunity to maximise and create value for shareholders through the execution of asset enhancement initiative and potential strata-sale strategy”.
AXA Tower can also house medical suites occupying no more than 32,000sq-ft.
Source : Channel NewsAsia – 30 Jan 2015