Capital Square sold for S$889m
Pacific Star Group has announced that Capital Square will be sold to Alpha Investment Partners' Macro Trends Fund and NTUC Income for S$889 million.
This works out to around S$2,300 psf, making it the largest office transaction in Singapore so far this year.
Capital Square, a Grade A office property at Church Street, was acquired by Germany's ERGO Insurance Group in 2002 and has been managed by MEAG Pacific Star Asset Management since the acquisition. It comprises a 16-level office tower and two rows of conservation buildings, housing offices and F&B outlets.
"We are pleased with the returns achieved and delivered to our investor, ERGO Insurance Group. We did considerable asset enhancement work since we were on board as asset manager in 2002," said Andy Tan, EVP of Asset Management at Pacific Star Group.
"The most recent achievement of our role as asset manager was the successful refinancing of Capital Square through the issuance of the largest Singapore-dollar denominated corporate bond in 2009, a watershed deal against the then backdrop of tight liquidity due to the global financial crisis."
Wolfgang Wente, Head of Real Estate Funds and Cooperations, MEAG, remarked, "We are very delighted that Pacific Star has once again demonstrated their ability to execute another joint transaction for ERGO Insurance Group in a timely and efficient manner, even in the most volatile and challenging investment climate. We thank them for their strong support and cooperation in these difficult market conditions."
The Pacific Star Group is a property investment house providing services such as the management of investments, funds, REIT and assets, as well as private equity.
It manages prime office, residential and retail space across Asia, including Pavilion Residences in Kuala Lumpur, TripleOne Somerset in Singapore and Noon Square in Seoul.
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