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02-10-13, 11:44
http://www.businesstimes.com.sg/premium/singapore/perennial-aborts-proposed-tripleone-somerset-deal-20131002
Published October 02, 2013
Perennial aborts proposed TripleOne Somerset deal
By Kalpana Rashiwala [email protected]
PERENNIAL Real Estate Holdings is said to have aborted its proposed deal to buy TripleOne Somerset after the 17-storey office-and-retail building's owner raised the asking price to $1 billion.
This is higher than the $980 million agreed in a letter of intent granted to Perennial to carry out due diligence under an exclusivity period. This ended earlier this week without a deal being concluded, BT understands.
Other potential buyers are said to have been approached, including Australia's Lend Lease and US-based private equity giant Blackstone Group.
TripleOne Somerset is owned by Asia Real Estate Income Fund (AREIF), which is managed by Singapore-based Pacific Star. AREIF investors are believed to include German funds, some local institutions and a Qatar party.
Located on Somerset Road opposite Somerset MRT Station, the building is on a site with a balance lease term of about 61 years.
AREIF bought TripleOne Somerset for $1.01 billion in early 2008 from Singapore Power and Public Utilities Board. It is said to have later invested about $80 million sprucing up the asset, including converting its first two levels to retail space and revamping the entrance and lobby, raising the building's net lettable area from 550,000 square feet to 566,000 sq ft.
Retail tenants include NTUC FairPrice, which operates gourmet supermarket FairPrice Finest, Chinese restaurant group Imperial Treasure, Atlas Sound and Vision, and The Orientalist Carpets. Office tenants include AXA Life Insurance, Parkway Group and the International Air Transport Association.
Published October 02, 2013
Perennial aborts proposed TripleOne Somerset deal
By Kalpana Rashiwala [email protected]
PERENNIAL Real Estate Holdings is said to have aborted its proposed deal to buy TripleOne Somerset after the 17-storey office-and-retail building's owner raised the asking price to $1 billion.
This is higher than the $980 million agreed in a letter of intent granted to Perennial to carry out due diligence under an exclusivity period. This ended earlier this week without a deal being concluded, BT understands.
Other potential buyers are said to have been approached, including Australia's Lend Lease and US-based private equity giant Blackstone Group.
TripleOne Somerset is owned by Asia Real Estate Income Fund (AREIF), which is managed by Singapore-based Pacific Star. AREIF investors are believed to include German funds, some local institutions and a Qatar party.
Located on Somerset Road opposite Somerset MRT Station, the building is on a site with a balance lease term of about 61 years.
AREIF bought TripleOne Somerset for $1.01 billion in early 2008 from Singapore Power and Public Utilities Board. It is said to have later invested about $80 million sprucing up the asset, including converting its first two levels to retail space and revamping the entrance and lobby, raising the building's net lettable area from 550,000 square feet to 566,000 sq ft.
Retail tenants include NTUC FairPrice, which operates gourmet supermarket FairPrice Finest, Chinese restaurant group Imperial Treasure, Atlas Sound and Vision, and The Orientalist Carpets. Office tenants include AXA Life Insurance, Parkway Group and the International Air Transport Association.