Property circuit excited over 2 big deals for good reason

THE recent large Singapore office sales - Asia Square Tower 1 for S$3.38 billion and Straits Trading Building for S$560 million - have sparked much-needed buzz in the property investment sales circuit. More than just big money, what excited the market was that the buyers are high-profile investors with long-term investment horizons.

Several office building owners have seen a spike in interest from potential buyers and have used the opportunity to launch their buildings for sale - such as 77 Robinson Road and 110 Robinson Road. A fund managed by Alpha Investment Partners is said to be on the verge of granting exclusivity to ARA Asset Management for doing due diligence for the purchase of its half-stake in Capital Square.

Asia Square Tower 1 was bought by sovereign wealth fund (SWF) Qatar Investment Authority. Indonesian tycoon and philanthropist Tahir (through listed MYP) is buying Straits Trading Building along Battery Road. The profiles of these two buyers typify the type of big money said to be making its way to the Singapore office market: investors taking a strategic long-term view on the island-state.