KKR buys Twenty Anson for nearly S$600m from AEW

Singapore

An entity linked to US-based private equity group KKR is understood to be buying Twenty Anson for close to S$600 million from AEW, The Business Times understands.

The price works out to about S$2,900 per square foot (psf) on the net lettable area of 206,200 square feet (sq ft) for the 20-storey office building which is on a site with a balance leasehold tenure of about 84.5 years. It was completed in 2009.

Market watchers note the acquisition of the property, a stone's throw from Tanjong Pagar MRT, will provide KKR its maiden direct Singapore real estate exposure.

Twenty Anson has untapped gross floor area (GFA) of close to 34,400 sq ft. This means there is potential to expand the existing GFA of 252,070 sq ft by nearly 14 per cent. Under the Urban Redevelopment Authority's Master Plan 2019, the 27,281 sq ft site is zoned for commercial use with 10.5 plot ratio, which would allow a maximum GFA of around 286,450 sq ft.

CBRE is understood to be involved with the transaction.

Market watchers are expecting an active year for Singapore office investment sales supported by projections of sustainable economic growth and office demand in addition to the tight supply situation.

These factors have led to strong interest from both institutional investors and high-net-worth individuals and family offices who are buying offices (including strata properties) on the island.

Some S$5.15 billion of Singapore office assets were transacted last year based on data compiled by JLL Research, which covers transactions of S$5 million and above involving assets with at least 80 per cent office component.

The figure for the whole of 2020 was S$2.26 billion. In 2019, prior to the Covid outbreak, the figure was S$7.60 billion.

Office deals so far this year include the S$1.26 billion sale of 79 Robinson Road and the sale of 55 Market Street for nearly S$287 million by AEW, a US-based real estate investment manager.

Currently on the market is Gaw Capital's Robinson 77, with an indicative price of close to S$900 million or about S$2,920 psf on the existing net lettable area. This is being marketed by CBRE and Savills via expression of interest. The property is on a site with a balance leasehold tenure of about 71 years.

Also in the market is Lazada One at 51 Bras Basah Road.