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Perennial Real Estate Holdings (PREH) has formed a consortium to purchase the 50-storey AXA Tower (pictured) in Singapore’s central business district for S$1.17 billion.
The purchase price translates to about S$1,735 per sq ft.
AXA Tower has a total net leasable area of around 674,000 square feet and overall gross floor area (GFA) of about 1.03 million square feet. However, the landmark building currently has an unutilised plot ratio that can be used for an additional GFA of more than 212,000 square feet. Medical suites with a maximum area of 32,000 square feet can also be constructed.
In line with this, the consortium will explore the most efficient way to use the additional GFA and the allowed medical suite usage to maximise the value of the property. Strata-sales of the office space may also be considered.
“AXA Tower, with its strategic location, good connectivity and sizeable unutilised GFA, is an excellent asset with strong upside potential. PREH’s significant investment in the iconic operating asset not only strengthens the Group’s foothold in Singapore, but also provides the Group with an additional stream of stable income,” said PREH’s Chief Executive Officer Pua Seck Guan.
The consortium comprises PREH, HPRY1 Holdings and other investors. Specifically, PREH will have a 41.3 percent equity interest in the property, while HPRY shall hold a 10.1 percent stake.
The acquisition is expected to be completed by April 2015.
Image source: Perennial Real Estate Holdings
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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