Khazanah, Temasek to sell part of DUO property for $1.6b

This article is more than 12 months old

Jul 31, 2019 06:00 am

A joint venture between Malaysia sovereign wealth fund Khazanah and Singapore state investor Temasek is selling the office and retail units of its DUO property development in Singapore, it said late on Monday.

The joint venture named M+S Pte Ltd will sell all the shares of its wholly owned subsidiary, Ophir-Rochor Commercial Pte Ltd, worth $1.575 billion to Allianz Real Estate and private equity firm Gaw Capital Partners.

Khazanah earlier this year unveiled a plan to deliver more cash to the government by pruning its stakes in non-strategic assets and dialling back its offshore presence, while Temasek posted the smallest portfolio rise in three years for 2018 as divestment value exceeded investments.

The sale announced in a statement on Monday includes DUO Tower, an office block with 20 floors of prime Grade-A office space, and DUO Galleria, with 56,000 sq ft of retail space located right outside the city's financial district.

M+S still owns Andaz Singapore, a 5-star hotel operated by Hyatt occupying the top 15 floors of DUO Tower as well as the 660 premium residential units.

M+S also owns Singapore's Marina One, a development comprising 1.88 million sq ft of office space with tenants including Facebook, 140,000 sq ft in retail space and luxury apartments.