A consortium of investors led by Perennial Real Estate Holdings are contemplating the en bloc sale of AXA Tower along Shenton Way (below) at no less than $1.65 billion (approximately $2,150 psf), according to an announcement by Perennial on July 31.

Taking into account asset enhancement initiative (AEI) costs of $140 million, which will be borne by the potential buyer, the post-AEI strata value works out to be about $2,333 psf. On-going enhancement works are expected to be completed by 2019.

Post-AEI, the 99-year leasehold property will have a gross floor area (GFA) of 1.06 million sq ft, up from its existing GFA of 1.03 million sq ft. This will comprise 680,020 sq ft of office space, an expanded retail space of 60,773 sq ft, and a new medical component spanning 26,565 sq ft. The 50-storey Grade ‘A’ Office Tower sits on 118,250 sq ft of land. Current anchor tenants include AXA Insurance, BOC Aviation and Lazada South East Asia.

Situated within the central business district, AXA Tower is connected via an underground pedestrian link to Tanjong Pagar MRT Station and the forthcoming Prince Edward MRT Station, which is due for completion in 2025. The property also houses 612 car park lots across three basement levels.

The Perennial-led consortium contemplating the potential sale of AXA Tower comprises Perennial, the Kuok Khoon Hong-owned HPRY Holdings, as well as other investors. Perennial and HPRY hold equity interests totalling 41.3% in AXA Tower.

The consortium received enquiries from buyers interested in a collective purchase of the development because of the improved office market sentiment in Singapore. It intends to appoint JLL and CBRE as joint marketing agents to manage enquiries on the potential en bloc sale of the property.

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