Perennial Real Estate-led group close to buying AXA Tower

Singapore

PERENNIAL Real Estate Holdings is said to be leading and syndicating a consortium that is close to inking a deal to buy AXA Tower - the 50-storey distinctive circular office building opposite Tanjong Pagar MRT Station - from BlackRock.

The price is about S$1.18 billion, translating to roughly S$1,750 per square foot (psf) based on the existing net lettable area (NLA) of nearly 675,000 sq ft. AXA Tower is on a site with a balance lease term of about 66.5 years.

CBRE and JLL marketed the property last year for sale by private treaty.

Based on AXA Tower's current rental income, the purchase price is said to reflect a net yield of 4 per cent. Located at 8 Shenton Way, the building is around 90 per cent occupied - p…