A fund managed by LendLease has sold the office component of a mixed-use complex in western Singapore to Keppel’s private funds for S$462m (€311m).
The office component of Jem, part of an integrated development in the Jurong Lake District of Singapore, has been acquired by private funds under Keppel’s sustainable urban renewal (SUR) strategy, which targets value-add real estate opportunities.
The property, completed in 2014, is fully leased to the Ministry of National Development of Singapore. To enhance value and drive investor returns, Keppel will explore undertaking targeted upgrading works aimed at reducing the property’s energy use intensity.
In April, SUR secured an additional S$760m in new capital commitments, with a contribution from one of Europe’s largest pension funds. The total funds under management for the strategy now stand at approximately S$4.3bn.
Bridget Lee, CIO, real estate, Keppel, said: “The addition of Jem’s office component into the SUR strategy portfolio will position it well to benefit from the growth prospects of the Jurong Lake District, while leveraging Keppel’s proven expertise in strategic asset enhancement to support the tenant’s spatial and sustainability requirements. We are committed to enhancing the value of the asset to generate attractive returns.”
Singapore-listed Lendlease Global Commercial REIT, which bought Jem in 2022, in a deal that valued the entire asset at S$2.1bn, said proceeds from the divestment would be used to pay down debt and to fund future acquisitions.
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