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 purchase of the iconic One Raffles Place office development in Singapore's central business district, according to sources familiar with the matter. The transaction is expected to be worth just under S$2.4 billion, making it one of several commercial real estate assets changing hands as the market begins to recover.
The property, which comprises two office towers and a retail mall, is currently owned 81.54% by OUE REIT, a real estate investment trust backed by the Indonesian Riady family. UOL Group Ltd., Khattar Holdings Pvt, and United Overseas Bank Ltd also hold minority stakes in the holding company, with UOB controlling the remaining 18.46% and occupying space within the complex.
An OUE REIT spokesperson confirmed that a process to gauge market interest in the development is underway. While CapitaLand Investment and IOI declined to comment, an IOI spokesperson stated they would consider the sale "if and when it happens". OUE REIT's shares rose nearly 3% in early trading, while CapitaLand Investment and IOI shares fell by around 2%.
The sale of One Raffles Place follows a surge in large-scale real estate transactions in Singapore, with the city-state expected to surpass its pre-pandemic peak in deals, according to data provider MSCI Inc.
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- CapitaLand, IOI close to buying S$2.4bil office towers in Singapore freemalaysiatoday.com
