Hong Kong-based private equity real estate investor Gaw Capital is leading a consortium to buy Singapore’s DUO asset in Bugis, which includes office and retail space at a price of around SGD 1.58 billion ($1.14 billion), per a report by Business Times.
Insurance giant Allianz’ realty investment arm, Allianz Real Estate, is also a part of the consortium that is negotiating the proposed deal, the report further stated.
While an email sent to Allianz Real Estate did not elicit any response, Gaw Capital declined to confirm or comment on the possible pricing and other details of the transaction.
According to the report, the pricing is expected to be around S$2,600 per square foot for the total net lettable area of about 615,000 sq ft for the office and retail space. At the mentioned rate, the pricing may work out to be over $1 billion.
The asset is owned jointly by Malaysia’s strategic investment fund, Khazanah Nasional Berhad and Singapore state-owned investment company, Temasek Holdings (Private) Limited through M+S Pte Ltd that was set up in June 2011 to develop four land parcels in Marina South and two land parcels in Ophir-Rochor as integrated developments of Marina One and DUO, respectively.
DUO comprises premium residences, Grade-A office spaces, a boutique retail gallery and a 5-star hotel (the 342-room Andaz Singapore). There are separate talks going on for the sale of the hotel to RB Capital, the report stated.
This is not the first time that Allianz and Gaw Capital are coming together for a realty investment. Allianz earlier acquired a 50 per cent interest in a portfolio of core modern logistics assets across China – the assets were developed by Vialog China and owned by a Gaw Capital-managed fund.
Gaw Capital had earlier acquired two towers of the four office blocks in Shanghai’s iconic SKY SOHO through a fund under its management and in partnership with a consortium including Allianz Real Estate. Further, late last year Allianz Real Estate picked up a 20 per cent stake in Singapore’s Ocean Financial Centre for S$537.3 million ($392.3 million).