FWD Group, the insurance arm of Hong Kong billionaire Richard Li’s Pacific Century Group has agreed to purchase a 50% stake in a Singapore office tower for US$424 million.
The insurance group will buy half of One George Street, a 23-storey building in Singapore’s Raffles Place commercial district, from CapitaLand Commercial Trust Management.
FWD will hold its stake in the building through a joint venture with CapitaLand Commercial Trust. The transaction is expected to be completed in mid-June 2017, resulting in US$1,900 per square foot of net lettable area.
Want the latest insurance industry news first? Sign up for our completely free newsletter service now
After the transaction, CapitaLand Commercial Trust Management will remain the asset manager for the building, while sister firm CapitaLand Commercial Management will continue as the property manager.
One George Street was jointly developed by CapitaLand and German insurer ERGO, with multinational liquor company Diageo’s Singapore unit and plastics manufacturer Borouge among its major tenants.
The purchase comes just over a year after the emerging insurance group entered the Singaporean market. Pacific Century Group acquired 90% of medical insurer Shenton Insurance from Parkway Holdings in April 2016. Richard Li is the son of Li Ka-shing, one of Asia’s richest men.
Related stories:
Manulife purchases property at the heart of Singapore CBD
FWD Singapore launches industry-first cover
FWD Singapore launches travel and motor insurance businesses
