Singapore real-estate firm OUE buys DBS Towers for $638 million

One of Singapore's key property developers Overseas Union Enterprise Limited (OUE) announced yesterday that the company has acquired the iconic DBS Towers in the central business district of the island-nation for S$870.5 million ($638 million).

OUE's wholly-owned subsidiary Total Apex Limited has entered into a conditional sale and purchase agreement with Alkas Realty Pte Ltd to acquire the 99-year leasehold of the two DBS Towers located in Shenton Way, at the heart of the central business district, the company said in a statement.

In 2005, Goldman Sachs fund had bought the asset through a special purpose company Alkas Realty for approximately S$690 million.

The two skyscrapers which are fully leased at present, cover a total gross floor area of approximately 1.24 million sq ft. DBS Towers are strategically located in close proximity to the Marina Bay area with a host of convention, leisure, commercial and entertainment facilities with exciting growth opportunities.

OUE is a leading property player in Asia with a complete portfolio of assets across the retail, commercial, residential, and hospitality sectors and its stock is listed on the Singapore Stock Exchange.

Executive chairman of the company Stephen Riady commented, ''This valuable addition is in line with our strategic goal of leveraging our local market expertise to maximize exciting investment opportunities from high-yield properties and landmark assets in Singapore.''