Perennial-led consortium mulls sale of AXA Tower in Shenton Way for at least S$1.65 billion

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SINGAPORE - A group of investors led by Perennial Real Estate Holdings is mulling the en bloc sale of AXA Tower in Shenton Way for at least S$1.65 billion, following a number of inquiries regarding the property.

Perennial said on Monday (July 31) it had received a number of en bloc sale inquiries for AXA Tower, " as a result of the improved Singapore office market environment and strong interest in the commercial office segment".

The guide price is equivalent to about S$2,150 psf based on a total strata area of about 767,3581 sq ft after renovation works.

Taking into account the renovation cost of S$140 million that is fully debt-funded, to be borne by the potential new owner, the strata value post-renovation would be about S$2,333 per sq ft, Perennial added.

The Perennial-led consortium comprises Perennial, HPRY Holdings and other investors. HPRY is an investment vehicle wholly-owned by Mr Kuok Khoon Hong, who is one of the largest sponsors of Perennial and the chairman of Perennial.

Perennial and HPRY hold equity interests of 31.2 per cent and 10.1 per cent respectively, amounting to a total interest of 41.3 per cent, in AXA Tower.

The 50-storey AXA Tower, is a predominantly-office landmark integrated development, and is connected via an underground pedestrian link to Tanjong Pagar MRT Station and the upcoming Prince Edward MRT Station, which is expected to be completed in 2025.

Perennial said the refurbishment works include increasing the footprint of the retail podium spanning Basement 1 and Level 1 to about 60,000 sq ft, building a new 32,000 sq ft two-storey annex block fronting Maxwell Road to house medical suites, improving the efficiency of the offices, and the upgrading the office lifts.

Source: Straits Times, 31 Jul 2017

View Perennial's press release on sale of AXA Tower HERE