This article is from the Australian Property Journal archive
THE New Star International Property Fund has paid £42 million pound for an office building in Singapore's CBD.
The Parakou building is a newly-constructed 16-storey prime office building located in the prominent Shenton Way area at the heart of Singapore’s Central Business District.
The property is tenanted by blue chip companies such as Cisco Systems and Parakou Shipping.
New Star’s head of property acquisitions Asia Simon Tyrrell said Singapore has been a focus for the fund as it is a location with sustainable growth drivers and is a rival to Hong Kong as the financial centre of South East Asia and a gateway to India.
“This growth should ensure that Singapore continues to benefit from a strengthening supply/demand imbalance. We are planning further acquisitions here and are seeking further prime acquisitions in the broader region as the fund grows.
“Singapore is an attractive centre for investment due to its buoyant economic growth potential over the long term. Singapore, like London, attracts strong interest from financial services firms and current office supply is falling short of expected demand. Prime office rents rose 62% in 2006 and the medium and long-term prospects look healthy, as Singapore develops its new Business and Financial Centre,” he added.
Last week the fund bought P&O House at 160 Sussex Street in Sydney for approximately $55 million.
That was the second Australian purchase for the fund, which last month paid $19 million for the 650 sqm Bulgari store at 64 Castlereagh Street in the Sydney CBD.
Australian Property Journal
