JP Morgan Asset Management and Nuveen Real Estate have purchased a Singapore office building for S$1.28bn (€830m).

The two investment managers acquired One George Street, a 23-storey office building, through a 50-50 joint venture.

The building in Raffles Place was sold by the Singapore-listed CapitaLand Integrated Commercial Trust and Hong Kong insurer FWD Group.

David Chen, CIO and head of real estate for Asia-Pacific at JP Morgan Global Alternatives, said there was an opportunity to capitalise on a “cyclical upswing” that began earlier this year.

“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,” he said.

Louise Kavanagh, CIO and head of funds management for Asia-Pacific at Nuveen Real Estate, told IPE Real Assets: “Both JP Morgan and Nuveen will maintain control over their own interest.

“The premium office space sector will remain relevant post-pandemic as we see ongoing demand for office space, coupled with limited grade-A supply supporting office rental growth in the near term.”

Kavanagh said the strength of the tenant covenants and strategic location “should provide stable income to our investors over time”.

At the end of September, the building had more than 50 multinational tenants and an occupancy rate of 97%.

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