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.
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.
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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-
South Korea’s National Pension Service (NPS) has formed a US$1.5 billion joint venture with US real estate investment firm Hines to develop urban infill projects globally, with one-fifth of investments slated to be in North America and Asia Pacific.
According to Hines, the new joint venture will adopt a build-to-core strategy, where projects are aimed at creating core real estate rather than competing to acquire it.
It will focus on mixed-use, residential, office and logistics sectors in markets that have high entry barriers, the company says in a statement on December 11.
Hines will be responsible for sourcing, designing and executing project development. It did not disclose shareholding details of the joint venture.
Hines partners with Korean pension fund to develop billions in real estate
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A construction worker looks at the view during a visit to the 33rd floor of the La Colombe d’Or Hotel & Residences to mark the topping out of the building in Houston s Montrose neighborhood, Tuesday, Sept. 10, 2019. The Developer Hines is building the 265-unit, high-rise luxury multifamily project next to the historic La Colombe d’Or Hotel.Mark Mulligan, Houston Chronicle / Staff photographer
Houston-based Hines has launched a joint venture with the National Pension Service of Korea to develop as much as $5 billion worth of commercial real estate worldwide. The partners said the effort would address the demands of modern spaces.