Perennial says it may invest up to a 30% stake in AXA Tower

Perennial Real Estate says it is eyeing a 30 per cent stake in AXA Tower. -- PHOTO: THE BUSINESS TIMES
Perennial Real Estate says it is eyeing a 30 per cent stake in AXA Tower. -- PHOTO: THE BUSINESS TIMES

Mainboard-listed Perennial Real Estate Holdings said in a statement to the Singapore Exchange on Friday (Jan 16) that it is exploring the syndication of a consortium of investors to acquire AXA Tower, taking on the role of an asset manager and potentially investing up to a 30 per cent stake in the property.

The company was clarifying a report on Friday's The Business Times, which said the price for AXA building is about $1.18 billion, translating to roughly $1,750 per sq ft (psf) based on the existing net lettable area of nearly 675,000 sq feet.

In its statement, Perennial said no definitive agreement has been entered into and no firm decision has been made on whether or not to proceed with the deal.

The group focuses on large-scale, mixed-use developments primarily in China and Singapore. It owns interests in and/or manages a diversified portfolio measuring about 36.5 million sqft and over 2 million sqft in gross floor area in China and Singapore respectively.

In China, Perennial developed two of the largest high speed railway commercial hubs in the country, Chengdu East High Speed Railway Integrated Development and Xi'an North High Speed Railway Integrated Development. The Group is also invested in the Zhuhai Hengqin Integrated Development.

In Singapore, Perennial is invested in and manages prime and iconic properties located predominantly in the Downtown Civic District and Orchard Road precinct, such as Chijmes, Capitol Singapore, TripleOne Somerset and the House of Tan Yeok Nee. The group also holds stakes in and manages 112 Katong mall and Chinatown Point mall.