Commerz Real AG signed the deed for the 78 Shenton Way estate in Singapore, the total transaction volume approximating 324 mln. The property, having a gross floor area of about 33,000 m², consists of a 34-story office building, the North Tower, and a 7-story project development, the South Tower, the two being connected via a shared lobby area.
78 Shenton Way.
The investment object 78 Shenton Way is earmarked for the hausInvest global open-end property fund. It was sold by Shenton Singapore Holdings Pte. Ltd., a joint venture of Credit Suisse Real Estate Fund International Holding AG and TTO Investment, a fund managed by CLSA (Crédit Lyonnais Securities Asia) Capital Partners Singapore.
The office complex is located at the western end of the Central Business District (CBD), and is part of the submarket Tanjong Pagar. Here, the past twelve months have seen no project development-induced additions to the floor-space supply. The location benefits from easy access to the city's public transportation system.
Tenants in the almost fully let North Tower belong to a variety of industries, such as shipping, financial services, or consulting. The South Tower is being raised to adjacent North Tower. This modern, high-end office building will have a gross floor area of more than 7,000 m² by the time of its completion in late 2009.
"78 Shenton Way is our first investment in Singapore. It marks our successful entry onto one of the fastest growing and most dynamic markets in Asia, even worldwide. We are looking for further opportunities", says Hans-Joachim Kühl, Board Member of Commerz Real AG in charge of real estate acquisitions. "Following investments in Japan and South Korea, hausInvest global expands its strategic position in the Asian-Pacific area. Singapore, being one of the most important trading hubs worldwide, and having enormous economic capacity, is a very attractive location," Kühl added. "The positive economic environment offers a sound foundation for seizing the opportunities on Singapore's office sector, where a high rent growth is to be expected."
Source: Commerz Real