ARA, Sumitomo Subsidiaries Invest S$297mil In Capital Square Office Bldg
SINGAPORE – ARA Asset Management and two units of Japanese leasing firm Sumitomo Mitsui Finance and Leasing Company (SMFL) have formed a joint venture (JV) that will invest S$297 million in Capital Square, a mixed-use development with office space in Singapore, reported The Edge on Monday afternoon (21 February, SGT).
Situated in Singapore’s central business district (CBD), Capital Square comprises 3 floors of shophouses and 16 levels of office space. It was completed in 1999 and renovated in 2013.
The commercial property has a “high quality, diversified tenant-mix”. Among its major tenants are multinational financial firms and IT companies.
In 2016, ARA purchased a half-stake in the office tower that was originally constructed by developer Keppel Land. Based on estimates, the stake was valued at approximately S$415 million (S$2,500 psf).
Meanwhile, the two SMFL subsidiaries involved in the transaction are real estate asset manager Kenedix and SMFL Mirai Partners, a property and environmental energy company. The latter is a consolidated subsidiary of SMFL, while the former became a consolidated subsidiary in January 2021.
The joint investment marks the maiden deal under the partnership, where Kenedix will be in charge of the fund management operations, whereas ARA will handle the asset management work.
In a joint statement published today, SMFL, SMFL Mirai Partners, and Kenedix said they are engaging in investment and financing businesses in Asia, where they highlighted that Singapore is a leading market, and its vibrant property market has promising prospects thanks to the expected robust economic recovery.