NTUC Income will be acquiring a further 51 per cent stake in 16 Collyer Quay from Goldman Sachs to fully own the prime office building.
In a statement, the Singapore insurer said the acquisition values the 37-storey, 999-year leasehold building formerly known as Hitachi Tower, at around S$660 million. This works out to less than S$2,400 per square foot on a net lettable space of over 278,000 square feet.
NTUC Income had bought its initial 49 per cent stake in the prime office building in January 2011.
The insurer said its sales and purchase agreement with Goldman Sachs is scheduled for completion at the end of the month.
16 Collyer Quay is located in Singapore’s central business district and has an occupancy rate of 94 per cent, comprising a mix of office and retail tenants.
NTUC Income added that it has plans to renovate the building to increase its asset value and appeal to office tenants.
Peter Heng, senior vice president and chief investment officer of NTUC Income, said: “16 Collyer Quay is part of our long-term strategy to allocate more of our investments to alternative investments, including real estate with a track record of strong income yields. Over the last five years, we have successfully diversified our portfolio to ensure stable, resilient, and higher returns for our policyholders.”
NTUC Income also fully or partially owns a number of commercial properties, such as NTUC Income Centre, Capital Square, Prinsep House, Parkway Parade, Ang Mo Kio Hub, EastPoint Mall and Clementi Mall.
Source : Channel NewsAsia – 2 Jan 2013