SINGAPORE - NTUC Income, which early last year acquired a 49 per cent stake in 16 Collyer Quay from Goldman Sachs, is now believed to be stitching a deal to buy out the remaining 51 per cent in the 999-year leasehold office tower from the US bank to gain full ownership of the asset.
The two sides are thought to have agreed on terms, although a deal is expected to be inked only next month at the earliest.
BT understands that the transaction values the office tower at around $660 million, or close to $2,400 per square foot on net lettable area of 278,356 square feet. Income's acquisition last year valued the property at about $626 million or $2,250 psf on NLA.
Goldman paid $811 million or $2,900 psf for 16 Collyer Quay - formerly known as Hitachi Tower - in early 2008.
When Goldman sells its remaining 51 per cent in Savu Investments, which owns the 37-storey office tower, it will mark the divestment of its last major Singapore real estate asset, say market watchers.
Its Savu stake is held by an entity, the shareholders of which are funds managed by affiliates of Goldman and an indirect subsidiary of the bank, according to an earlier report.
In 2010, Goldman funds sold DBS Towers on Shenton Way and Chevron House (formerly Caltex House) in Raffles Place (behind 16 Collyer Quay).
Income has been active in the Singapore property investment sales market this year. In July, Mercatus Co-operative Ltd - whose shareholders include Income - acquired a 50 per cent stake in nex, a mall in Serangoon, for $825 million.