Allianz makes first Singapore property move in $392 million deal
Allianz SE is making its first foray into Singapore’s property market with the purchase of a stake in an office tower.
Allianz SE is making its first foray into Singapore’s property market with the purchase of a stake in an office tower in the city’s central business district.
Allianz Real Estate, the real estate investment arm of Allianz Group, will acquire a 20% stake in Ocean Financial Centre, a 43-story Grade-A office tower, from Keppel REIT for S$537.3 million ($392 million), the company said in a statement Friday. The deal is part of Allianz’s strategy to allocate 5% to 10% of its real estate investments to the Asia-Pacific region, it said.
‘Quality portfolio of core assets’
“This transaction is aligned with our approach of creating a quality portfolio of core assets in 24×7 cities,” said Rushabh Desai, Asia-Pacific chief executive officer at Allianz Real Estate.
Singapore prime office rents have climbed 18% during the past six quarters amid a dearth of new space. Supply will only start to increase in 2020 with the scheduled completions of ASB Tower and Afro-Asia i-Mark. In 2021, CapitaSpring and the redevelopment of Hub Synergy Point should be finished, followed by IOI Properties’ development in Marina Bay in 2022, according to JLL.
Keppel REIT currently owns 99.9% of Ocean Financial Centre. Built in 2011 by Keppel Land, the property has a total net leasable area of 877,635 square feet, comprising an office tower with retail outlets on the ground floor and basement level. The occupancy rate was 95.5% as at September 30.
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