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Perennial leads consortium to acquire AXA Tower for S$1.17b

PERENNIAL Real Estate Holdings Limited (PREH) has syndicated a consortium of investors to acquire AXA Tower at a property purchase price of S$1.17 billion, translating to S$1,735 per square foot (psf).

PREH, together with Singapore business tycoon Kuok Khoon Hong who is a shareholder of PREH, will hold a total equity interest of 41.3 per cent in AXA Tower. PREH's 31.2 per cent equity investment amounts to about S$117.9 million.

AXA Tower, a 50-storey prime landmark office development with some retail space, is located in Singapore's Central Business District and enjoys three major frontages along Shenton Way, Anson Road and Maxwell Road.

The property has a total net lettable area of about 674,000 sq ft and total gross floor area of about 1.03 million sq ft.

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AXA Tower has unutilised plot ratio that translates to an additional GFA of over 212,000 sq ft. The property is also allowed to house medical suites amounting to no more than 32,000 sq ft.

The consortium comprising PREH, Mr Kuok and some other investors will explore the most efficient asset plan to utilise the additional GFA and permissible medical suite usage to maximise the value of the asset.

The strata-sale of the office space at the property will also be explored, PREH said on Friday.