Alibaba Group, the Chinese e-commerce tech giant, has invested in AXA Tower and buying 50% of its stakes.
The current value of the sold property stands at S$1.68 billion. This transaction will boost the confidence of a fragile Singapore commercial market that has been severely hit by the Covid-19 pandemic.
Perennial Real Estate Holdings along with a group of investors recently made a purchase agreement with Alibaba’s Singapore branch. This was revealed by Perennial through a press statement.
Situated at Central Business District’s 8 Shenton Way, AXA Tower is a 50-storey commercial building marked for Grade-A office development. The office building also comes with retail podium, said Perennial.
The Urban Redevelopment Agency has already approved to increase the existing GFA or gross floor area of 1.05 million square feet to 1.55 million square feet.
This permission has been given so that according to the CBD Incentive Scheme, this building can also be used for residential and hotel purposes.
Perennial Newco which is a recently formed part of the Perennial consortium, and Alibaba Singapore will start redeveloping the property once the deal is completed. It is expected that paperwork will be finalised soon.
The CEO of Perennial, Pua Seck Guan said that since Alibaba was already among the anchor tenants of the building, their support will now help make AXA Tower among Singapore CBD’s most iconic landmarks.