SINGAPORE (THE BUSINESS TIMES) – JP Morgan Global Alternatives has acquired a 50 per cent interest in One George Street for US$472 million (S$644 million), it announced on Monday (Dec 13).
The acquisition comes on the heels of Capitaland Integrated Commercial Trust’s (CICT) move last month to divest its stake in the 23-floor Grade A office tower in Raffles Place for $640.7 million.
CICT’s proceeds were 50 per cent of the consideration of a greater move by OGS LLP to divest its whole stake in One George Street to SG OGS, a private limited company, for $1.28 billion, or about $2,875 per sq ft.
OGS previously got involved when CapitaLand Commercial Trust (CCT) sold the property for $1.18 billion into the limited liability partnership, of which the trust owned 50 per cent. The 50 per cent stake was later absorbed into CICT after CCT and CapitaLand Mall Trust merged.
With the acquisition, JP Morgan Global Alternatives’ chief investment officer and head of real estate for Asia-Pacific David Chen said the company intends to capitalise on a “cyclical upswing” which he noted had begun earlier this year.
Providing the backdrop for this opportunity is Singapore’s attractiveness as an investment destination in the region, combined with increasing office demand from the technology and financial services sectors, as well as a moderate level of new supply, he pointed out.
“One George Street exemplifies the type of differentiated properties in which we invest – well located, easily accessible, highly amenitised and sustainably designed and operated – that attract both quality occupiers and the talent that wants to work for them”, Mr Chen said.
As at Sept 30, One George Street has more than 50 multinational tenants, with an occupancy rate of 97 per cent, which JP Morgan Global Alternatives believes will provide opportunities for a “diversified and stable income”.
The building features modern building management systems, large column-free floor plates and was awarded a Green Mark GoldPlus green building certification by the Building and Construction Authority in March this year.