JPMorgan, Nuveen acquire 50% interests in One George Street for US$472m each

ONE George Street has been sold to a joint venture between JPMorgan Global Alternatives and Nuveen Real Estate for US$944 million (S$1.29 billion).

In separate press statements on Monday (Dec 13), the two companies said they will each take 50 per cent interest in the 23-floor Grade A office tower in Raffles Place, which has over 50 multi-national tenants and an occupancy rate of 97 per cent as of Sept 30.

The acquisition comes on the heels of Capitaland Integrated Commercial Trust's (CICT) announcement last month to divest its stake in One George Street for S$640.7 million.

CICT's proceeds were 50 per cent of the consideration of a greater move by OGS LLP to divest its whole stake in One George Street to SG OGS, a private limited company, for S$1.28 billion, or about S$2,875 per square foot.

OGS previously got involved when CapitaLand Commercial Trust (CCT) sold the property for S$1.18 billion into the limited liability partnership, of which the trust owned 50 per cent. The 50 per cent stake was later absorbed into CICT after CCT and CapitaLand Mall Trust merged.

Commenting on the acquisition, JPMorgan Global Alternatives, which is the alternative investment arm of JP Morgan Asset Management, said the building’s tenant mix and occupancy rate "will provide both opportunities for diversified and stable income".

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Its chief investment officer and head of real estate for Asia-Pacific David Chen added that the company intends to capitalise on a "cyclical upswing" which he noted had begun earlier this year.

Providing the backdrop for this opportunity is Singapore's attractiveness as an investment destination in the region, combined with increasing office demand from the technology and financial services sectors, as well as a moderate level of new supply, he pointed out.

"One George Street exemplifies the type of differentiated properties in which we invest - well located, easily accessible, highly amenitised and sustainably designed and operated - that attract both quality occupiers and the talent that wants to work for them", Chen added.

Nuveen, meanwhile, noted that the acquisition brings its portfolio’s total assets under management to over US$1.2 billion.

Louise Kavanagh, its chief investment officer and head of funds management for Asia Pacific, said the Grade A office building will anchor Nuveen’s portfolio “in a financially robust and attractive market and sector”, complementing its current allocation to logistics and multifamily.

“The premium office space sector will remain relevant post-pandemic as we see ongoing demand for office space, coupled with the limited Grade A supply supporting office rental growth in the near term,” she added.

Kavanagh also stressed that the strong in-place tenant covenants and strategic location should provide “stable income” to Nuveen’s investors over time.

One George Street was completed in 2004, featuring modern building management systems, large column-free floor plates of 30,000 sq ft, as well as a high floor ceiling height of 3m which provide ample flexibility for single or multi-tenant use. 

It attained the Building and Construction Authority’s Green Mark GoldPlus green building certification in March 2021.

READ MORE: 

• CICT divests stake in One George Street for S$640.7 million

• Will CICT exit One George Street?