Investors mull over selling AXA Tower for $1.65b

The tower will be sold for no less than $2,150 psf.

The association of investors owning AXA Tower is mulling an en bloc sale at $1.65b, according to an announcement by Perennial Real Estate (PREH).

DBS Equity Research said the tower will have a selling price of $2,150 psf, based on the post AEI total strata area of 767,358 sqft. A number of enquiries for the property have already made their way to the consortium.

The AEI of $160m will be shouldered by the new owner.

JLL and CBRE were also assigned as marketing agents for the property sale.

Currently known majority stakeholders include PREH, Kuok Khoon Hong, and BreadTalk which own 30.1%, 10.1%, and 5.31%, respectively.

AXA Tower was bought for $1.7b or $1,725 psf in 2015. A refurbishment of the property is set to complete in 2018. It will involve building a retail podium of 60,000 sqft. and annex block of 30,000 sqft.

DBS Equity Research also noted that the en bloc sale will have an impact on BreadTalk that has a 5.31% stake of $23m on the asset.

Upon the sale of AXA Tower, BreadTalk could enjoy a raise in share price from $1.9 to $2 and in equity stake to $45m or 16 cents per share.