SINGAPORE (BLOOMBERG) - Deka Immobilien GmbH, 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 $420 million in 2010 from a property fund managed by Goldman Sachs Group Inc., 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 the Marina Bay district, while Qatar's sovereign wealth fund acquired an office building from BlackRock Inc. for a record $3.4 billion last year.
Blackstone Group LP earlier this year sold its Sime Darby Centre in the Bukit Timah area, for $365 million to Singapore developer Tuan Sing Holdings Ltd.
"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 Priyaranjan Kumar, regional executive director of capital markets at Cushman & Wakefield Inc. in Singapore.
A Deka spokesman said the Singapore building is the only one the firm owns in the Asian city-state, while declining to comment further.
The Chevron House, a high-rise skyscraper in Singapore's Raffles Place, houses tenants such as Chevron Corp.'s Singapore unit. The 262,650 square foot building comprises a four-story retail podium with a basement that links directly to the Raffles Place train station and a 29-story office tower.