Perennial-Led Group Buys Singapore Tower for S$970 Million

A consortium led by Perennial Real Estate Holdings agreed to buy a Singapore office and retail tower near the prime Orchard Road shopping belt for S$970 million ($766 million).

The group signed an agreement over the weekend to acquire the 17-story TripleOne Somerset building, Singapore-based Perennial said in an e-mailed response to queries from Bloomberg News. The tower is owned by the Asia Real Estate Income Fund, which is managed by the Pacific Star Group. The fund acquired the asset in February 2008, according to Pacific Star’s website.

Office rents in Singapore are starting to increase, according to broker Cushman & Wakefield Inc. Average grade-A office rents rose 4 percent to S$9.38 per square foot per month in the fourth quarter, Cushman said in an e-mailed statement on Nov. 28.

TripleOne Somerset’s tenants include Parkway Pantai Ltd., a healthcare provider, and Petra Foods Ltd., a chocolate confectionery maker. The first two floors have been converted into retail space, according to the fund’s website.

The Business Times reported the deal earlier today.

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