One Raffles Place attracting interest from IOI, CLI, tycoons: sources

[SINGAPORE] One Raffles Place, a major office complex in the heart of Singapore’s commercial centre, is attracting interest from multiple suitors, according to people with knowledge of the matter.

Parties that are looking to acquire the asset, which is being marketed for more than S$2.3 billion, include father-and-son property tycoons Raj Kumar and Kishin RK, Malaysian developer IOI Properties Group and Singapore asset manager CapitaLand Investment (CLI), the people said, asking not to be identified because the information is private.

The development, which consists of two iconic office towers and a retail mall, is just one of numerous commercial real estate assets in a market seeing a renewed buzz because of lower borrowing costs and a greater willingness of owners to discuss pricing.

OUE Reit, a real estate investment trust backed by the wealthy Indonesian Riady family, controls an 81.54 per cent interest in the property.

United Overseas Bank holds the remaining 18.46 per cent and occupies space in the complex. The Reit said in an exchange filing in February that it is conducting an exercise to determine market interest in the development along with UOB.

OUE Reit will determine the appropriate action taking into account the results of the exercise, a spokesperson said. Representatives for UOB declined to comment, as did Kumar and Kishin’s property firm RB Capital. CapitaLand and IOI didn’t respond to requests for comment. 

But challenges remain. One obstacle is the substantial asking price of such assets, which makes it difficult for a single buyer to acquire – an issue that is also facing the sale of a S$5.7 billion asset in the city centre, Marina One. 

One Raffles Place was worth S$2.37 billion based on a valuation of the Reit’s stake at the end of 2025. It has 702,980 square feet of lettable space.

The asking price is also seen as high because an acquisition of the assets will likely involve more capital outlay for redevelopment, two of the people said.

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Most of the complex dates back to the 1980s but only one of its towers and part of its retail space have long-term leases lasting for centuries. The other tower and 75 per cent of the retail space have leases that will expire by the 2080s.

Malaysian tycoon Lee Yeow Seng’s IOI has been aggressively expanding its presence in the city-state with a spate of acquisitions, including most recently Asia Square Tower 2, an office building it is buying for S$2.48 billion.

CLI, which is backed by investment agency Temasek Holdings, has stakes in various Reits and private funds. Kumar and Kishin back various firms including Royal Holdings and RB Capital. They control a multibillion-dollar property portfolio in Singapore including RB Capital Building, which is next to One Raffles Place. BLOOMBERG