2 Jan 2013
Insurer buys another 51 percent stake from Goldman Sachs to take full control of
prime CBD office building
Singapore, 2 January 2013 – NTUC Income, a leading insurer in Singapore, announced that it has signed a sales and purchase agreement with Goldman Sachs which will see NTUC Income taking 100 percent ownership of 16 Collyer Quay, a prime office building in the heart of Singapore’s Central Business District. The agreement is scheduled for completion at the end of the month.
In January 2011, NTUC Income acquired a 49 percent stake in Savu Investments, the holding company which owns the asset, from Goldman Sachs. By buying the remaining 51 percent stake, NTUC Income will gain full control of the 37-storey, 999-year leasehold building, formerly known as Hitachi Tower.
The acquisition values the property at around $660 million, or less than $2,400 per square foot, on a net lettable space of over 278,000 square feet. Presently, it enjoys a healthy occupancy rate of 94 percent and stable rental income from a diverse mix of office and retail tenants. NTUC Income has plans to renovate the building to increase its asset value and appeal to office tenants.
Peter Heng, Senior Vice President and Chief Investment Officer, NTUC Income said, “This acquisition provides us with a rare opportunity to fully own a prime-grade 999-year leasehold office building in Singapore’s Central Business District, where the supply of high-quality commercial property is limited.”
Mr Heng added, “16 Collyer Quay is part of our long-term strategy to allocate more of our investments to alternative investments, including real estate with a track record of strong income yields. Over the last five years, we have successfully diversified our portfolio to ensure stable, resilient and higher returns for our policyholders.”
NTUC Income fully or partially owns a number of other commercial properties including NTUC Income Centre, Capital Square, Prinsep House, Parkway Parade, Ang Mo Kio Hub, EastPoint Mall and Clementi Mall.
The sale and purchase of 16 Collyer Quay is a proprietary deal between Goldman Sachs and NTUC Income and follows the strong partnership between the two organisations since NTUC Income first acquired a stake in the asset.