Perennial-led consortium to put AXA Tower up for sale at no less than S$1.65b

A CONSORTIUM led by Perennial Real Estate Holdings Limited (Perennial) is considering an en bloc sale of AXA Tower at no less than S$1.65 billion.

This translates to S$2,150 per square foot based on the total strata area of 767,358 sq ft after its asset enhancement initiative (AEI).

The Perennial-led consortium intends to appoint JLL and CBRE as joint marketing agents to manage enquiries on the potential en bloc sale of AXA Tower.

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

Perennial said that this sale consideration follows the receipt of a number of en bloc sale enquiries for the development, as a result of the improved Singapore office market environment and strong interest in the commercial office segment.

AXA Tower still encompasses unutilised gross floor area of about 185,850 sq ft post-AEI, which could be harnessed to create further value.