NTUC Income announced that it has paid S$101 million for a 49 percent equity stake in Savu Investments, which owns 16 Collyer Quay, formerly known as Hitachi Tower.
The 999-leasehold office building is valued at around S$626 million or S$2,250 psf. Located close to the waterfront in the Collyer Quay area, the prime office property has a net lettable area (NLA) of 278,356 sq ft.
The remaining 51 percent stake in Savu Investments is still owned by an entity, whose shareholders are funded by an indirect subsidiary and affiliates of Goldman Sachs, said NTUC Income in a press statement.
Savu Investments has also refinanced 16 Collyer Quay via a senior secured bond offering. ANZ, which was the sole lead manager, bookrunner and underwriter for the bond offering, managed to put it on the market in only under three weeks, capturing robust market liquidity in the first few days of 2011.
Reuben Tucker, Head of Capital Markets Asia at ANZ, said, “The process was among the swiftest in recent times for a property secured bond transaction of this size in Singapore. The offering closed with an oversubscribed and well-represented order book in just half a day.”
The investment comes just as the commercial property market is expected to continue growing, said NTUC Income.
The deal happens at a time when Singapore’s office capital values are still over 25 percent of their 2008 peak levels, said Peter Heng, Chief Investment Officer of NTUC Income, adding that it was an opportunity for the company to work with a global player such as Goldman Sachs.