Temasek sells joint-owned office asset for $1.6b

Allianz will own 60% of the assets whilst Gaw Capital will hold the remaining 40%.

M+S, a joint venture between Temasek and Malaysia’s sovereign wealth fund Khazanah, is selling its premium grade-A office assets DUO Tower and DUO Galleria for $1.6b, an announcement revealed.

Germain firm Allianz Real Estate and Hong Kong-based Gaw Capital have signed a sale and purchase agreement to acquire 60% and hold 40% of the assets, respectively.

Located above the Burgis MRT Interchange station, the commercial asset comprises 557,972 sqft of international premium grade-A office space with 59,873 sqft of retail space and a current occupancy rate of 97%. M+S will retain ownership of the five-star hotel Andaz Singapore at DUO Tower operated by Hyatt.

The deal adds to the number of recent deals in Singapore by Allianz, which include the purchase of 77 Robinson Road for $710m and last year’s acquisition of 20% of Ocean Financial Center for $573.6m.

“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. It will be an excellent addition to our global 24/7 cities office portfolio,” said Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate.