SINGAPORE (Reuters) – A joint venture between Malaysia sovereign wealth fund Khazanah and Singapore state investor Temasek is selling the office and retail units of its DUO property development in Singapore, it said late on Monday.
The joint venture named M+S Pte Ltd will sell all the shares of its wholly owned subsidiary, Ophir-Rochor Commercial Pte Ltd, worth S$1.575 billion ($1.15 billion) to Allianz Real Estate and private equity firm Gaw Capital Partners.
Khazanah earlier this year unveiled a plan to deliver more cash to the government by pruning its stakes in non-strategic assets and dialing back its offshore presence, while Temasek posted the smallest portfolio rise in three years for 2018 as divestment value exceeded investments.
The sale announced in a statement on Monday includes DUO Tower, an office block with 20 floors worth of prime Grade-A office space, and DUO Galleria, with 56,000 square feet of retail space located right outside the city-state’s financial district.
M+S still owns Andaz Singapore, a 5-star hotel operated by Hyatt occupying the top 15 floors of DUO Tower as well as the 660 premium residential units.
M+S also owns Singapore’s Marina One, a development comprising 1.88 million sq ft of office space with tenants including Facebook, 140,000 sq ft in retail space and luxury apartments.
Owned 60:40 by Khazanah and Temasek respectively, M+S was set up in June 2011 to develop the two projects in Singapore.
($1 = 1.3698 Singapore dollars)
Reporting by Fathin Ungku; Editing by Subhranshu Sahu