Singapore’s Sovereign Wealth Fund Buys 25% Stake In Chevron’s HQ

AUSTRALIA – GIC has acquired a 25 percent in Chevron’s upcoming headquarters in Perth, Australia for roughly A$220 million (US$170 million), reported the Herald Sun on Tuesday (9 February).

The property bought by Singapore’s sovereign wealth fund is under construction. The quarter-stake was offloaded by Brookfield Asset Management, which purchased the Swan River frontage from the oil company in 2019 via a deal requiring the buyer to build a 29-storey office building measuring 57,000 sq m, with Chevron Australia agreeing to lease 78 percent of the office space for 15 years.

Last year, American investment firm Invesco picked up a half-stake in the project for around A$200 million, while GIC and Brookfield will each own a 25 percent stake in the office building.

Apart from premium office space, Chevron’s HQ will also feature a lobby, conference & exhibition spaces, as well as retail outlets. Moreover, the development is expected to generate around 1,200 jobs.

Chevron’s headquarters in Perth is anticipated to be ready by mid-2023.

Previously, GIC was involved in a major commercial transaction in Perth in 2018, when it purchased the Exchange Tower from Primewest and AMP Capital. The sovereign wealth fund forked out roughly US$228 million for the 40-storey tower after outbidding listed group Elanor and Shenzhen-based JiaHe JianAn Group’s subsidiary, Zone Q.

In 2020, GIC also entered into a project agreement with Aussie property investor EG Funds Management that provided for a mandate valued at A$400 million (US$287 million).

With a similar strategy to the Yield Plus Infrastructure Fund 2, the mandate’s objective is to buy income-producing properties close to new or upgraded transport infrastructure.

Based on data from Global SWF, which monitors investments by state-owned investors like public pension funds and sovereign wealth funds, GIC was the world’s most active government-owned investor last year.

In fact, Singapore’s sovereign wealth fund invested US$17.7 billion in 2020 compared to US$24 billion during the previous year.