Khazanah unit to divest office and retail space for RM4.73bil

M+S is a 60:40 joint venture between sovereign wealth funds Khazanah Nasional Bhd of Malaysia and Temasek Holdings of Singapore. It was set up in 2011 to develop two integrated developments in central Singapore, namely, Marina One and Duo

SINGAPORE: M+S Pte Ltd has proposed to dispose of its entire stake in its wholly owned subsidiary, Ophir-Rochor Commercial Pte Ltd (ORC), for S$1.575bil (RM4.73bil).

In a statement, M+S said the sale of its property development unit, which manages office and retail space in Singapore, to Allianz Real Estate, acting on behalf of several Allianz group companies, and real estate private equity firm Gaw Capital Partners, acting on behalf of a sovereign wealth fund separate account, would equate to S$2, 570 per sq ft of net lettable area.

The offer was received through an expression-of-interest process conducted by property consultant JLL, it said.

M+S is a 60:40 joint venture between sovereign wealth funds Khazanah Nasional Bhd of Malaysia and Temasek Holdings of Singapore. It was set up in 2011 to develop two integrated developments in central Singapore, namely, Marina One and Duo.

ORC is the developer and owner of Duo Tower and Duo Galleria, the office and retail portion of Duo, a mixed-use development, which also includes Duo Residences and the Andaz Singapore hotel.

The Duo development is situated in the Ophir-Rochor corridor in Singapore, right next to the heritage district Kampong Glam, and was designed by acclaimed architect Ole Scheeren. Duo Tower consists of 20 floors of prime Grade-A office space occupied by prestigious MNCs and leading local companies, while Duo Galleria is a retail mall that connects directly to the Bugis MRT station, an interchange for the Downtown line and East West line.

The proposed transaction does not include Andaz Singapore, the five-star luxury lifestyle hotel by Hyatt that occupies the top 15 floors of Duo Tower.

M+S continues to own Andaz Singapore as well as Marina One, the newest and largest integrated mixed-use development in the heart of Marina Bay.

“With the office and retail assets performing well beyond expectations, we are delighted that the proposed transaction of S$1.575bil at a record price for this area, has presented the opportunity to maximise returns for our shareholders, ” M+S CEO Kemmy Tan said.

“As we continue to own the hotel Andaz Singapore, we look forward to working alongside the powerful combination of Allianz Real Estate and Gaw Capital Partners, who have impressive global track records in real estate management and development, to further reinforce Duo as an attractive place for global business and travellers, ” she added.Tan said the group continued to see tremendous growth opportunity for Andaz Singapore, especially as Bugis continues its transformation journey as a vibrant, eclectic, and complementary leisure and business district to the existing CBD.

“M+S will continue to own and manage Andaz Singapore and the Marina One assets to the optimal level for our shareholders, ” she said.