Gaw Capital Partners and Allianz Real Estate have finally Acquired DUO Commercial Space
One of the Biggest Commercial Deal in 2019
M+S Pte Ltd the joint venture that has Malaysia and Singapore has divested part of its flagship mixed-use project Duo.
Located in Ophir-Rochor precinct, the office and retail areas of this signature project are being sold for S$1.575 billion.
This would translate to a rate of S$2,570 per square foot for the net lettable area. An official statement from M+S Pte Ltd confirmed the sale that stands on a 99-year leasehold site.
Gaw Capital Partners, the Hong Kong based private equity firm and Allianz Real Estate have teamed up for this acquisition.
As a part of the deal, Gaw Capital and Allianz would be acquiring 570,000 sq ft of prime office space in the office block Duo Tower which meets Grade-A commercial space criteria and 56,000 sq ft of retail space at Duo Galleria.
However, Andaz Singapore, a luxury hotel run by the Hyatt Group will continue to occupy the top 15 levels in the property which will remain M+S’s holding in the building after this deal.
Khazanah Nasional, Malaysia based wealth fund has 60% holding in M+S while the remaining belongs to Temasek Holdings based in Singapore.
The joint venture also owns Marina Bay’s mixed-use development Marina One.
Construction for Marina One and Duo started in the year 2010.
It was part of a major land-swap deal which saw Malaysia exchange several land parcels in Bukit Timah, Kranji, Woodlands and Tanjong Pagar that belonged to Malayan Railway for Marina South and Ophir-Rochor sites.
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M+S’s Chief Executive, Kemmy Tan said that the firm still sees immense growth opportunities for the hotel component at Duo and hence they decided to retain it.
In the statement Ms Tan also stated that Marina One and Andaz Singapore shall continue to be owned and managed by M+S at an optimal level for the benefit of their shareholders.
Kenneth Gaw, President and Managing Principal at Gaw Capital Partners said that this deal marks a significant milestone for the group in its real estate investments in Singapore.
He added that this is their second office acquisition for the year 2019 and it bears testimony to the fact that the group is focused about the office market in Singapore.
The firm which focuses on real estate had recently acquire the office block at 77 Robinson Road for S$710 million.
Among other investment made by the firm in Bugis district Hotel G located in Middle Road and PoMo a retail and office development in Selegie Road which was also acquired in partnership with Allianz back in 2017.