StanChart sells its Changi Business Park assets to Japanese buyers
The bank will continue to occupy the buildings via a long-term leaseback agreement.
Standard Chartered has sold two business park assets in Singapore to Japanese investors, as part of a capital-efficient strategy. The buyers are Japanese property developer Hulic and real estate-focused investment bank Risa Partners, who announced the sale on Aug 5. The properties are located in Changi Business Park, a traditional hub for financial firms' back-end operations that has experienced high vacancy rates recently.
Standard Chartered has previously attempted to lease space in the park, according to Bloomberg News. The investors expressed confidence in the long-term performance of the assets due to continued demand for high-quality business park space. EZA Hill co-founder Frank Ng stated that partnering with Hulic and Risa Partners is part of their strategy to broaden their capital base to include prominent Japanese institutions.
Standard Chartered CEO Patrick Lee confirmed that the bank will maintain a long-term leaseback agreement for the properties, stating that it is a "part of our strategy to be capital efficient and will provide us with long-term capacity for business growth". Lee also noted that Standard Chartered remains a significant presence in Singapore's office market, having previously reduced its city-center office space.
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