OUE Bayfront complex offers 400,000 square feet of net lettable area
19 Jan 2021 |
The Asset
Allianz Real Estate, on behalf of the National Pension Service of Korea (NPS) and Allianz group companies (Allianz), has agreed to acquire a 50% stake in OUE Bayfront in Singapore for S$634 million (US$477 million). The deal with the manager of OUE Commercial REIT is expected to close at the end of February.
The agreed value translates to a passing yield of 3.6%. The seller will guarantee, subject to an aggregate cap of S$6 million, the net property income for the first year and second year following the completion of the deal.
Godrej Fund Management sets sights on $3 bn office projects portfolio by 2023
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Synopsis
Godrej Fund Management, the real estate private equity arm of the Godrej Group, plans to strengthen its pan-India office projects portfolio to over $3 billion or Rs 22,000 crore by 2023 as it deploys a strategy to take this portfolio public through a Real Estate Investment Trust (REIT) or hold these assets though a large private core fund.
Agencies
Godrej Fund Management, the real estate private equity arm of the Godrej Group, plans to strengthen its pan-India office projects portfolio to over $3 billion or Rs 22,000 crore by 2023 as it deploys a strategy to take this portfolio public through a Real Estate Investment Trust (REIT) or hold these assets though a large private core fund. This will be India’s first domestic private equity fund with such a large office projects portfolio that can rival global entities like the Blackstone Group and Brookfield Asset Management that
South Korea’s National Pension Service (NPS) and German insurer Allianz Group are buying a 50% stake in a commercial and retail property in Singapore from local property trust OUE Commercial REIT for S$634 million (US$475.5 million).
The investment is being made through AREAP Core I, a $2.3 billion property co-investment fund which NPS and Allianz established in June 2020, and is managed by the insurer’s property investment unit Allianz Real Estate.
Last August, the fund bought a portfolio of Japanese multifamily resident buildings in Japan from unnamed investors for $160 million.
The purchase of the stake in the Singapore property, OUE Bayfront, is expected to be completed at the end of February, Allianz says in a statement on January 19.
SWFs, pension funds remain eager to buy property assets
Falling tourist numbers, a rise in e-commerce and a growing cohort of homeworkers haven t stopped SWFs and pension funds from pouring millions into office and retail real estate.
Sovereign wealth and pension funds expanded their allocations to real estate in 2020 more than to any other type of alternative asset. They also closed the highest number of deals in the sector, compared to other industries such as technology and infrastructure.
According to Preqin data, among alternatives assets, sovereign wealth funds allocated an average $3.84 billion to real estate, a 10.3% increase from last year. Meanwhile, their allocations to hedge funds, private equity and infrastructure showed relatively smaller increases of between 1.5% and 2.9%.
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OUE Bayfront on Collyer Quay
Allianz Real Estate has moved forward with a deal to acquire a half-stake in one of Singapore’s flagship office properties in a bet on the long-term health of the city’s core office market.
The property investment arm of the European insurance giant announced today that it has reached an agreement to purchase 50 percent of the equity in OUE Bayfront on behalf of a fund invested by Allianz Group and Korea’s National Pension Service at a price of S$634 million ($477 million).
“Over the medium to long term, the investment prospects of Singapore offices will remain favourable, as the market is well positioned from a supply, occupancy cost, market transparency, technology and business environment perspective to cushion any potential adverse impact of the near-term market volatility,” said Rushabh Desai, chief executive for Asia Pacific at Allianz Real Estate, who also pointed to the city’s effective management of the COVID-