Mapletree Pan Asia Commercial Trust (MPACT) has divested a S$775m (€530m) office building in Singapore to pay down debt and strengthen its balance sheet.
The identity of the buyer was not disclosed, but IPE Real Assets understands that a private equity fund in Singapore is the buyer of Mapletree Anson, the 19-storey office building located in the Tanjong Pagar micro-market.
Manager of the trust, MPACT Management, has agreed to sell the asset, at a marginal gain of S$10m over the property’s latest valuation as at 31 March 2024. However, the manager said the agreed price was S$95m higher than the original purchase price of S$680m in 2013.
Sharon Lim, CEO of the manager, said: “This proactive step also enhances MPACT’s financial resilience and agility, strengthening our fundamentals to navigate the dynamic market landscape and seize emerging opportunities.
“Although there will be a marginal adjustment in the proportion of our Singapore assets, Singapore remains the cornerstone of our investment strategy, accounting for more than 50% of our portfolio.”
Upon completion of the divestment, MPACT’s portfolio will comprise 17 commercial properties located across the five key gateway markets of Asia, with a total lettable area of 10.8m sqft.
Singapore, underpinned by core assets, VivoCity and Mapletree Business City, will continue to be a significant component of MPACT’s portfolio, contributing approximately 58% and 53% to MPACT’s net property income.
Ting Lim, head of capital markets, Singapore, JLL, advisor for the divestment, said the transaction was the largest office transaction in Singapore in the past 24 months.
“The sale reinforces the resilience in the asset class and confidence in the long-term stability and sustainable rental growth potential of the wider sector, “ said Lim.
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