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The deal marks the largest commercial transaction in the city-state this year
August 30, 2024 | Staff Reporter | Singapore | Property Management
A joint venture supported by private equity firm Warburg Pincus LLC has purchased approximately S$1.6 billion ($1.2 billion) worth of real estate assets in Singapore, marking the largest commercial transaction in the city-state this year.
The newly established platform, also backed by Australia’s Lendlease Corp., will focus on acquiring business parks and specialized facilities designed for life sciences and research and development companies. The portfolio covers a gross floor area of 4.5 million square feet across Singapore, as detailed in a statement released by the companies involved.
The assets are being acquired from entities linked to Blackstone Inc. and Lim Chap Huat, the executive chairman of Soilbuild Group Holdings Ltd.
Warburg, which has other real estate investments in Asia including Hong Kong-based ESR Group Ltd., initiated this life sciences and R&D platform in collaboration with Lendlease at the end of the previous month. Lendlease had previously announced the sale of its life sciences interests in Asia to the 50:50 joint venture for S$129 million.
Despite investor interest, significant transactions in Singapore’s industrial market are uncommon, making this one of the largest deals recorded in the sector, which is typically tightly held and regulated. Following this acquisition, Warburg’s Singapore-based platform now manages assets exceeding S$2 billion.
The property market in Singapore has been subdued, impacted by high-interest rates and a notable pricing gap between buyers and sellers. According to data from MSCI Inc., commercial real estate transactions in the financial hub dropped by 49% year-on-year to $2.9 billion in the first half of the year.
