M+S sells part of Duo complex for $1.575b

The national joint venture will sell Duo Tower and Duo Galleria to Hong Kong private equity firm Gaw Capital Partners and Allianz Real Estate for $1.575 billion, or $2,570 per sq ft of net lettable area.

M+S Pte Ltd, the national joint venture between Malaysia and Singapore, is divesting a part of a mixed-use project in the Ophir-Rochor precinct, reported The Business Times.

The joint venture will sell the retail and office areas at the Duo Tower and Duo Galleria to Hong Kong private equity firm Gaw Capital Partners and Allianz Real Estate for $1.575 billion or $2,570 per sq ft of net lettable area.

Office block Duo Tower features 570,000 sq ft of Grade-A commercial space, while Duo Galleria has 56,000 sq ft of retail space. The Duo development includes 660 apartments and is nestled on a 99-year leasehold site.

“With the office and retail assets performing well beyond expectations, we are delighted that the proposed transaction of $1.575 billion, at a record price for this area, has presented the opportunity to maximise returns for our shareholders,” said Kemmy Tan, M+S chief executive.

Andaz Singapore, which is currently occupying the top 15 floors of Duo Tower, will be retained by M+S.

Seeing “tremendous growth opportunity” for the hotel component, the firm will continue to manage and own Marina One and Andaz “to the optimal level for our shareholders”, said Tan.

Kenneth Gaw, Gaw Capital Partners president and managing principal, views the Duo deal as “an important milestone for Gaw Capital in the Singapore real estate market”.

“After our acquisition of the 77, Robinson Road building in January, this deal marks our second major office transaction in Singapore in 2019 and signifies our continued optimism towards the office market here,” he said.

Source: 30 Jul 2019, CommercialGuru