Overseas Union Enterprise (OUE) has bought DBS Towers One and Two for nearly S$871 million.
DBS Towers, with a 99-year lease, is located at Shenton Way in the heart of the central business district.
DBS Tower One was built in 1975 and was then the tallest building in Singapore and the first to incorporate a covered walkway around the entire city block.
Together with DBS Tower Two, the 37-storey skyscraper comprises a total gross floor area of around 1.2 million square feet and a total net lettable area of some 883,000 square feet.
Both towers are currently fully leased out. Major tenants include financial institutions like DBS Bank, Deloitte & Touche, Aviva and Deutsche Bank.
OUE said the acquisition is in line with its strategic goal of maximising investment opportunities from high-yield properties and landmark assets in Singapore.
The acquisition will be funded by a combination of internal funds and debt facility.
OUE said DBS Towers is poised to benefit from organic growth through positive rental reversions.
This is because prime office rents are expected to rise over the next few years as a result of limited new supply of office space in 2013 and 2014.
OUE said there is also asset enhancement potential in DBS Towers. The property is strategically located near the Marina Bay area, which is being transformed with the addition of convention, leisure, commercial and entertainment facilities.
Source : Channel NewsAsia – 11 Aug 2010