JLL advises on the sale of 50% interest in OUE Bayfront in Singapore CBD

SINGAPORE, 18 January 2021 – JLL (NYSE: JLL) today announced that it acted as advisor on the sale of a 50% interest in OUE Bayfront, a premium grade office asset located in the Singapore CBD. The 50% stake was purchased by the Allianz Real Estate Asia Pacific Core 1 fund (a closed-end fund domiciled in Singapore) at a transaction value of S$633.8 million ($476.6 million) for the property from OUE Commercial Real Estate Investment Trust (“OUE REIT”). OUE C-REIT will retain 50% ownership and OUE related entities will continue to maintain both asset and property management of the prime Grade A development.

Built in 2011, OUE Bayfront is an 18-storey prime institutional grade office building and one of Singapore’s premier commercial properties, with a remaining land tenure of 85 years. Located along the Marina Bay precinct, the asset boasts a strong mix of tenants from the financial services and legal services industries anchored by multinational companies.

“This transaction demonstrates that global investor appetite for high quality office buildings remains very strong in core gateway markets, and that there is real confidence in the resilience of the Singapore office market,” says Stuart Crow, CEO, Capital Markets, Asia Pacific, JLL.

The 50% interest acquisition in OUE Bayfront marks Allianz Real Estate’s latest move in the Singapore office market, following landmark transactions including acquiring the DUO asset with GAW Capital Partners in July 2019 and purchasing a stake in Ocean Financial Centre in November 2018.

“Global capital remains active and continues to be drawn to gateway markets and core assets like Singapore office. We see this transaction as indicative of deeper investor confidence in the long-term prospects for quality assets in the Singapore office market,” says Ting Lim, Head of Capital Markets, Singapore, JLL.

The total net leasable area (NLA) of OUE Bayfront is 399,846 sq ft as of 31 December 2020. As of December 2020, the committed occupancy rate of OUE Bayfront was circa 100%.