Allianz Real Estate has deepened its commercial real estate interests in Singapore after purchasing a 50 per cent stake in OUE Bayfront, a deal worth US$476.6 million (A$615m).
Located in the Marina Bay precinct the partial sale of the 18-storey prime office space building in Singapore’s CBD reinforces investor confidence in office assets in gateway cities according to JLL chief executive of capital markets Stuart Crow.
“This transaction demonstrates that global investor appetite for high quality office buildings remains very strong in core gateway markets, and that there is real confidence in the resilience of the Singapore office market,” Crow said.
The acquisition of a 50 per cent interest in OUE Bayfront is the latest in a series of Allianz Real Estate investments in the city-state, including DUO with GAW Capital Partners in 2019, and a stake in Ocean Financial Centre in 2018.
“Global capital remains active and continues to be drawn to gateway markets and core assets like Singapore office,” JLL head of capital markets, Singapore, Ting Lim said.
“We see this transaction as indicative of deeper investor confidence in the long-term prospects for quality assets in the Singapore office market.”
OUE Commercial Real Estate Investment Trust will retain 50 per cent ownership and related entities will continue to maintain asset and property management of the building.
The building is fully tenanted with a mix of financial services and legal services industries, and anchored by multinational companies.
JLL acted as advisor on the sale of the 50 per cent interest in the OUE Bayfront property.
Allianz Real Estate is the investment manager for an investment platform established last year in a partnership between Allianz and The National Pension Service of Korea.
OUE Bayfront was acquired under Allianz Real Estate Asia-Pacific Core I, a closed-end fund aimed at building a diversified portfolio of high-quality properties across the Asia Pacific region.