Keppel REIT currently owns 99.9% of the 99-year leasehold interest in Ocean Financial Centre which expires in 2110. Built in 2011 by Keppel Land and designed by Pelli Clarke Pelli Architects, the property offers a total net lettable area of 877,635 sf comprising a Grade A office tower with retail component on the ground floor and basement level. The floor plates are 20,000-25,000 square feet and column-free. For its efforts in sustainability, Ocean Financial Centre was recognized with the Green Mark Platinum Award and Green Mark Pearl Award in 2016 by the Building and Construction Authority of Singapore. The property has a committed occupancy rate of 95.5%.
The transaction was conducted by Allianz Real Estate, the EUR 60 billion real estate investment and asset manager of the Allianz Group, on behalf of several Allianz companies. This investment is part of Allianz’s strategy to allocate five to ten percent of its real estate exposure to Asia-Pacific.
“This transaction is aligned with our approach of creating a quality portfolio of core assets in 24x7 cities. The Singapore office market is experiencing strong rental growth. From an occupational cost and efficiency perspective it continues to be favorable vis-a-vis other comparable markets like Hong Kong,” said Rushabh Desai, CEO Asia-Pacific at Allianz Real Estate. “We are excited to invest in this iconic building in Singapore. Together with Keppel REIT, we will work towards our common objective of securing long-term yield for our investors, and we are confident that the property will outperform the market, owing to its prime location, superior quality and best-in-class asset management. This strategic partnership will also put us in good stead as we look towards exploring future collaborations.”
Tan Swee Yiow, CEO of Keppel REIT Management Limited, said, “Ocean Financial Centre is a sterling office development that is strategically positioned to capture value from the strengthening Singapore office market. With its premium facilities, green features and tenant-centric amenities and service offering, we are confident that Ocean Financial Centre will continue to be valued by tenants. We are happy to have found a like-minded partner like Allianz and look forward to forging a long-term partnership to drive greater returns for both Allianz’s and Keppel REIT’s investors.”