Alpha Investment Partners and NTUC Income jointly acquire Capital Square

This agreement is for an investment consideration of about $889 million.

According to Keppel, this works out to be approximately $2,300 psf for the prime property, which has a net lettable area of 386,525 sq ft.

The Australia and New Zealand Banking Group Limited (ANZ) is the sole arranger for the financing of this transaction.

Located in the heart of Singapore's CBD, Capital Square is a 16-storey Grade A office tower with two rows of heritage shophouses. It is the preferred business address for financial institutions and multinational corporations such as Bloomberg, Citibank and Morgan Stanley.

Capital Square boasts one of the largest column-free office floor plates of between 25,000 and 30,000 sq ft in Raffles Place. The building is well-designed with quality mechanical and electrical specifications, and has ample parking lots to meet the demand of its tenants.

Developed by Keppel Land Limited (Keppel Land), Capital Square has garnered numerous accolades including the SIA Façade Design Excellence Award, the Architectural Heritage Award by the Urban Redevelopment Authority, as well as the Certificate of Merit for Construction Excellence and Best Buildable Design by the Building and Construction Authority (BCA) of Singapore. It was also awarded the Green Mark Award in 2009 by BCA for its environmentally friendly features and practices.

AIP, the wholly-owned real estate fund management arm of Keppel Land, will be the asset manager for the joint venture partners upon the completion of the acquisition. Both AIP and NTUC Income also have plans to further enhance Capital Square through various asset enhancement initiatives to maintain the property's competitive edge.

NTUC Income's move to buy 50% of Capital Square comes weeks after it paid $101 million for its 49% stake in 16 Collyer Quay, prime office property, which graces Singapore's waterfront.