SG Roundup: Keppel Land, Morgan Stanley, Blackstone  

From the Keppel Land website

The latest in realty deals by Singapore companies has seen Keppel Land expanding its Jakarta investments. Within Singapore, a Morgan Stanley controlled fund is looking at bulk sale of luxury units, while private equity firm Blackstone has clinched its second major deal within the space of a month.

Keppel Land to build condo in West Jakarta

Singapore listed Keppel Land has reached a deal to buy a 4.6-hectare site in West Jakarta for Rp 381.9 billion (approximately S$40.2 million), and plans to build a residential development in this realty venture,  including a high-rise condominium with ancillary shop houses and shop units, the company said.

The venture will be launched in phases and the development will comprise more than 4,000 apartment units ranging from studio apartments to three-bedroom units. Targeted at home buyers in the middle income segment, the first phase of the development is expected to be launched in 2017.

The company said the project was located within the growth corridor of West Jakarta, and at a 15 minutes’ drive from the Soekarno-Hatta International Airport.

Keppel Land’s other projects in Indonesia include, upgrading International Financial Centre Jakarta, a premium Grade A commercial development in the city.

Work on the new 49-storey Grade A Office Tower 2 is progressing, and is scheduled for completion in the second half of 2015. It had also recently announced plans to redevelop Tower 1 into a 49-storey state-of-the-art office tower that will more than double its current net leasable area. Together, the twin-towered development located right in the heart of Jakarta’s Central Business District (CBD) will offer more than 120,000 square meters of premium office space when completed.

Morgan Stanley fund plans sale of luxury units

A fund managed by Morgan Stanley is exploring the possibility of a bulk sale of 23 units in Singapore’s Draycott Eight condo, and the asking price is S$2,300 per square foot, which values these units at S$157.4 million, Business Times said in a recent report.

The Fund has appointed agents for a potential deal. All the 22 four bedroom units owned by it are leased out at about $18,000 with the exception of the penthouse.

The report further said these 23 units “owned by the Morgan Stanley-managed fund were in a block that also has another 23 units owned by a fund managed by Alpha Investment Partners”.  The latter had bought its units at S$157 million or about S$2,300 psf from another Morgan Stanley-managed fund.

The two Morgan Stanley funds bought had bought their 23 units each in 2007 for S$2,600 psf.

Blackstone buys Anderson Royal Oak Residence

US-based private equity firm Blackstone Group LP has completed the deal to buy 21 Anderson Royal Oak Residence, a 10-storey property with 34 units for about S$164 million or S$1,917 psf based on the total strata area of 85,552 sq ft, Business Times said in a recent report.

The final price is higher than the S$159 million original price the private equity firm had agreed to when it began due diligence late last year. With both sides unable to reach a deal within the due diligence period, Blackstone initially proposed a lower price of $$155 million, which in turn had resulted in Arch Capital inviting other bidders.

Eventfully both companies agreed to the deal, the Business Times report added.

For Blackstone, this marks the second deal in Singapore within the space of a month. In December 2014, it had bought 18 units – all four bedroom apartments – at Paterson Suites for S$83 million or close to S$2,100 psf based on the units’ total strata area of 39,538 sq ft, from Real Estate Capital Asia Partners (Recap) series managed by SC Capital Partners.

“The units were part of a stack of 20 units that the Recap fund had bought in 2010 for S$118.61 million or S$2,700 psf from the project’s developer, Bukit Sembawang,” the report added.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.