Commerz Real buys in Singapore

Commerz Real is entering Singapore with the acquisition of the 78 Shenton Way estate for a total EUR 324 mln. The property, with a gross floor area of about 33,000 m2, consists of a 34-storey office building, called the North Tower, and the South Tower, a seven-storey project development. The two are connected by a shared lobby area.

The property is earmarked for the Hausinvest global open-end property fund. Shenton Way is being sold by Shenton Singapore Holdings, a joint venture of Credit Suisse Real Estate Fund International Holding and TTO Investment, a fund managed by Crédit Lyonnais Securities Asia Capital Partners Singapore.

The office complex is located at the western end of the Central Business District. The North Tower is almost fully let. The South Tower is currently being developed and will provide a gross floor area of more than 7,000 m² on completion in late 2009.

'78 Shenton Way is our first investment in Singapore. It marks our successful entry onto one of the fastest growing and most dynamic markets in Asia, even worldwide. We are looking for further opportunities', said Hans-Joachim Kühl, a Commerz Real executive in charge of real estate acquisitions. 'Following investments in Japan and South Korea, Hausinvest global expands its strategic position in the Asian-Pacific area. Singapore, being one of the most important trading hubs worldwide, and having enormous economic capacity, is a very attractive location,' he added.

Last month, Commerz Real purchased the Choongmuro Tower in the South Korean capital Seoul for Hausinvest Global. The purchase from Movie ABS, a subsidiary of Merrill Lynch, was the first by Commerz Real in South Korea. The financial details were not disclosed.

Commerz Real is a fully owned subsidiary of German asset manager Commerzbank. The company launched Hausinvest in 2004 and it now has a fund volume of EUR 1.7 bn.