Allianz Real Estate, the property arm of the German insurer, and Gaw Capital have teamed up to acquire the DUO Tower and DUO Galleria in Singapore for about S$1.6bn (US$1.17bn).
The partners bought the office and retail complex from developer M+S, which is a joint venture between Malaysian sovereign wealth fund Khazanah Nasional Berhad and Singaporean SWF Temasek.
Completed in 2017, the asset comprises 557,972 sq.ft. of grade-A office space, as well as 59,873 sq.ft. of retail space.
The property, which is 97%-let, is located above the Bugis MRT Interchange station with transport links to the CBD, Marina Bay and other metropolitan areas.
Allianz will own a 60% stake and Gaw Capital, representing a sovereign wealth fund separate account, will own the remaining 40% interest. Both parties will manage the asset.
“Singapore is an established 24/7 city and has one of the most institutionalised commercial real estate markets in the world given its position as a key headquarter location for corporations in Asia,” said Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate.
“M+S has done an impressive job of delivering DUO as a marquee, mixed-used development providing an unparalleled live-work-play environment and is poised to establish itself as one of Singapore’s key business hubs.
“Gaw Capital is one of our trusted partners in the region. We are excited about expanding our collaboration from value-add to core investments.”
“The acquisition of DUO deepens our strong partnership with Allianz Real Estate and we look forward to working together to add strategic value to the property,” said Christina Gaw, managing principal and head of capital markets at Gaw Capital Partners.
M+S will retain ownership of the complex’s Hyatt Group-operated hotel, which the top 15 levels of Duo Tower.
The deal follows Allianz Real Estate’s acquisition of a 20% interest in Singapore’s Ocean Financial Centre office building from listed firm Keppel REIT for S$537.3m last December.
Allen & Gledhill, Rajah & Tann, KPMG, and Arcadis acted as advisors to the joint venture.
This story was updated on August 1, 2019.