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DBS Group has agreed to sell PwC Building (pictured) at 8 Cross Street to an indirect subsidiary of Manulife Financial Corporation for $358 million, it said in an SGX filing.
The group revealed that the consideration was “arrived at on a willing-buyer willing-seller basis, and takes into account the unaudited book value of DBS China Square (DCS) as at 31 December 2016, adjusted based on an agreed property value of $747 million for the building, as well as the repayment by the purchaser of the shareholder’s loan of $402.6 million to DCS”.
DCS is a subsidiary of DBS, which owned and built the 28-storey building in 1999.
Set to be completed by end-March, the sale is expected to contribute around $350 million to the group’s consolidated net tangible assets and earnings.
Meanwhile, Manulife revealed plans to occupy 120,000 sq ft of the building by early 2019, reported the Straits Times.
“Having our own Manulife Building in a prominent location in the CBD will help us further strengthen the Manulife brand and provide greater brand visibility to consumers,” said a Manulife spokesperson, adding that owning its office space will help the company manage occupancy needs and costs in the long term.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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