Germany's Deka 'to put Chevron House on sale'

Chevron House in Raffles Place comprises a four-storey retail podium with a basement that links directly to the Raffles Place MRT station and a 29-storey office tower. It was acquired by Deka for about $580 million in 2010 and could possibly fetch ab
Chevron House in Raffles Place comprises a four-storey retail podium with a basement that links directly to the Raffles Place MRT station and a 29-storey office tower. It was acquired by Deka for about $580 million in 2010 and could possibly fetch about $700 million now.ST FILE PHOTO

Deka Immobilien, a unit of Germany's DekaBank Group, is putting up an office building for sale in Singapore's central business district, according to a person familiar with the matter.

The tower, Chevron House, could fetch about $700 million, said the person, who asked not to be identified because the sale process is private.

Deka acquired the property for around US$420 million (S$580 million) in 2010 from a property fund managed by Goldman Sachs Group, the company said at the time.

The sale of the building follows a flurry of activity in Singapore's commercial property market since last year. A Malaysian-led group bid $2.6 billion in 2016 for a rare site in Singapore's Marina Bay district, while Qatar's sovereign wealth fund acquired an office building from BlackRock for a record $3.4 billion last year.

Blackstone Group earlier this year sold its Sime Darby Centre in Singapore's Bukit Timah area, for $365 million to Singapore developer Tuan Sing Holdings.

"Now is a window of opportunity available for owners to recycle capital given evidence of rents firming up in prime office buildings, albeit at a cyclical low, and continued strong liquidity," said regional executive director of capital markets at Cushman & Wakefield in Singapore Priyaranjan Kumar.

Representatives at Frankfurt- based Deka did not immediately return calls or reply to e-mails seeking comment before normal business hours.

The Chevron House, a high-rise skyscraper in Raffles Place, houses tenants such as Chevron's Singapore unit.

The 262,650 sq ft building comprises a four-storey retail podium with a basement that links directly to the Raffles Place MRT station and a 29-storey office tower.

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A version of this article appeared in the print edition of The Straits Times on July 08, 2017, with the headline 'Germany's Deka 'to put Chevron House on sale''. Print Edition | Subscribe