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JP Morgan and Nuveen acquire One George Street for SG$1.28bn

The 23 storeyed building was sold by the Singapore-listed CapitaLand Integrated Commercial Trust and Hong Kong insurer FWD Group

Asset management giant JP Morgan and Nuveen Real Estate announced that they have entered into a partnership where they have bought One George Street, a 23- storey building in Singapore for SG$1.28 billion, according to media reports. The building was sold by the Singapore-listed CapitalL and Integrated Commercial Trust (CITC) and Hong Kong insurer FWD Group.

Both the companies mentioned they will each take 50 percent interest in the 23-floor Grade A office tower in Raffles Place and it comes with over 50 multi-national tenants and an occupancy rate of 97 percent as of September 30.

David Chen, CIO and head of real estate for Asia-Pacific at JP Morgan Global Alternatives told the media, “Singapore’s attractiveness as an investment destination in the region, combined with increasing office demand from the technology and financial services sectors and a moderate level of new supply, provide the backdrop for a unique opportunity. One George Street exemplifies the type of differentiated properties in which we invest – well located, easily accessible, highly amenitiesed and sustainably designed and operated – that attract both quality occupiers and the talent that wants to work for them.”

Louise Kavanagh, CIO and head of funds management for Asia-Pacific at Nuveen Real Estate also said that both the companies will maintain control over their own interest and the premium office space sector will remain time-relevant since the demand for office spaces post-pandemic, along with a limited grade-A supply supporting office rental growth in the near term. He further added, saying that the strength of the tenant covenants and strategic location is also expected to provide a stable income to the investors over time.

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