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Deka Immobilien, a German investment firm, has acquired Chevron House for $545.5 million (US$420 million), according to global real estate services provider Savills, which brokered the deal.
“The transaction reflects a 30 percent discount from the peak pricing of 2007 and prime rental levels remain approximately 50 percent below their peak in 2007,” said Craig Ward, director at Savills.
In 2007, a Goldman-linked property fund acquired Chevron House from developer CapitaLand for approximately $2,780 psf, or about $730 million.
Savills said Deka sees strong potential for asset enhancements and rental growth for the 262,650 sq ft Singapore office tower, which is located in the CBD.
It added that given the country’s strong economic growth and recovery in the office market, many other investors are seeking assets in Singapore ranging between $50 million and $500 million.
Goldman real estate funds have been divesting assets in Asia so far this year. It sold two other Singapore office blocks to OUE in August for a total of $870.5 million.