Foreign Property News | Posted by Si Thu Aung
Allianz Real Estate and Gaw Capital have agreed to acquire the Duo Tower and Duo Galleria in Singapore for S$1.6 billion ($1.2 billion), according to a joint announcement by the two companies.
The Munich-based insurer is set to own a 60 percent stake in the office tower and gallery-style shopping mall, while Gaw Capital, which is representing a sovereign wealth fund in the transaction, will acquire the remaining 40 percent.
“Singapore is an established 24/7 city and has one of the most institutionalized commercial real estate markets in the world given its position as a key headquarter location for corporations in Asia,” said Allianz Real Estate’ chief executive officer of Asia Pacific, Rushabh Desai, adding that the complex is an “unparalleled live-work-play environment and is poised to establish itself as one of Singapore’s key business hubs.”
The complex in Singapore’s Bugis area, which has 557,972 square feet (51,837 square metres) of grade A office space, is being sold roughly eight months after being put on the market by a joint venture between Malaysia’s strategic investment fund, Khazanah Nasional Berhad, and Singapore’s state-owned investment company, Temasek Holdings.
The 39-storey commercial tower, which will be jointly managed by Allianz Real Estate and Gaw Capital, was completed two years ago according to a design by German architect Ole Scheeren and is currently 97 percent occupied.
The new owners are paying the equivalent of S$2,590 per square foot for the combined complex, with the office space commanding rents of S$12 per square foot per month this year, on a par with Singapore’s prime Marina Bay submarket.
“We are delighted to be partnering with Allianz Real Estate to acquire this iconic asset,” said Gaw Capital’s managing principal and head of capital markets, Christina Gaw.
“The acquisition of Duo deepens our strong partnership with Allianz Real Estate and we look forward to working together to add strategic value to the property.”
Ref: Property Report
