CapitaLand, IOI close to buying S$2.4bil office towers in Singapore
IOI Properties Group Bhd has been expanding its presence in Singapore with a slew of acquisitions as the market revives on lower borrowing costs and more flexible pricing.
CapitaLand Investment Ltd and IOI Properties Group Bhd are close to finalizing a deal to acquire the iconic One Raffles Place office development in Singapore's central business district. The property, valued at almost S$2.4 billion, includes two office towers, 62 and 38 floors tall, and a retail mall.
Temasek Holdings Pte backs CapitaLand, while IOI is supported by the Malaysian billionaire Lee Yeow Seng. OUE REIT, owned by the Indonesian Riady family, holds an 81.54% stake in the property, with UOL Group Ltd, Khattar Holdings Pvt and United Overseas Bank Ltd each owning a minority share.
UOB, one of Singapore's largest lenders, controls the remaining 18.46% stake and also occupies space within the complex. The transaction is part of a recent surge in commercial real estate deals in Singapore, driven by low borrowing costs and sellers' flexibility in pricing.
While IOI and CapitaLand's shares reacted negatively to the news, OUE REIT shares surged nearly 3%. The sellers had initially targeted a price of S$2.5 billion. The complex, built mostly in the 1980s, has long-term leasehold tenancies for some parts, but will expire for others in the 2080s.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- CapitaLand, IOI close to buying S$2.4bil office towers in Singapore freemalaysiatoday.com
