Chevron House at Raffles Place up for sale at around S$700 million: Report

SINGAPORE — 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 S$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$580.8 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 S$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 S$3.4 billion last year.

Blackstone Group LP earlier this year sold its Sime Darby Centre in Singapore’s Bukit Timah area, for S$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 Mr Priyaranjan Kumar, regional executive director of capital markets at Cushman & Wakefield Inc. in Singapore.

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

The Chevron House, a high-rise skyscraper in Singapore’s Raffles Place, houses tenants such as Chevron Corp’s Singapore unit. The 24,400sqm 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. BLOOMBERG