DBS spending $1b for stake in new home

DBS spending $1b for stake in new home

Holdings is buying a 30 per cent stake in the building which houses its headquarters for over $1 billion to help manage its rental cost.

In a statement yesterday, the bank said it is buying the 30 per cent interest in Marina Bay Financial Centre Tower 3 from a joint venture of Hong Kong's Hutchison Whampoa and Cheung Kong groups for $1.035 billion.

The Hong Kong companies are controlled by Li Ka Shing, Asia's richest man.

MBFC Tower 3 is an award-winning 46-storey international Grade A office building with about 1.35 million square feet of net lettable area.

DBS is the anchor tenant, occupying more than 600,000 sq ft across 18 floors.

It was in October that the bank moved to MBFC Tower 3, which houses DBS headquarters, its innovative flagship branch, a state-of-the-art dealing room, and some 4,800 employees.

The building is owned by Central Boulevard Development Pte Ltd (CBDPL), a private company which is owned in equal one-third shares by the vendor, an indirect unit of Hongkong Land and a subsidiary of Keppel Land Properties Pte Ltd, the statement said.

The deal is structured as a purchase from the vendor of the 30 per cent equity stake and its associated shareholder's loan, for about $1.035 billion.

Both parties also entered into a conditional put option agreement for DBS to take up the vendor's remaining 3.33 per cent equity stake in CBDPL and its associated loan, for an estimated $115 million.

DBS, which will pay for the stake in cash from internal funds, expects the acquisition to be completed by year-end.

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