SINGAPORE - Perennial Real Estate Holdings (PREH), together with a consortium of investors, is buying AXA Tower for $1.17 billion.

PREH, together with HPRY Holdings, will hold a 41.3 per cent stake in the tower.

HPRY is a shareholder of PREH.

Based on the property's existing total net lettable area of about 674,000 square feet, the acquisition price translates to about $1,735 per sq ft.

AXA Tower is a 50-storey prime landmark office development with some retail space, located in the Central Business District along Shenton Way, Anson Road and Maxwell Road.

It has unutilised plot ratio that translates to an additional gross floor area (GFA) of over 212,000 sq ft.

The property is also allowed to house medical suites amounting to no more than 32,000 sq ft.

The consortium will explore the most efficient asset plan to utilise the additional GFA and permissible medical suite usage to maximise the value of the asset, PREH said.

The strata-sale of the office space at the prime property will also be explored, where feasible.

"AXA Tower, with its strategic location, good connectivity and sizeable unutilised GFA, is an excellent asset with strong upside potential," said PREH chief executive Pua Seck Guan.

"PREH's significant investment in the iconic operating asset not only strengthens the group's foothold in Singapore, but also provides the group with an additional stream of stable income.

The consortium comprises PREH, HPRY and some other investors. PREH and HPRY will respectively acquire a 31.2 per cent and 10.1 per cent equity interest in AXA Tower.

PREH's 31.2 per cent equity investment amounts to approximately $117.9 million.