Singapore Exchange Limited (SGX) today announced that it has agreed to sell its stake in SGX Centre located at Nos. 2 and 4 Shenton Way to United Overseas Bank Limited, for a price of S$271 million.
SGX owns and occupies a total net lettable area of approximately 169,500 sq ft in SGX Centre. SGX Centre was completed in 2000 and comprises a two tower 29-storey office building and podium.
The SGX premises are considered a non-core asset of its business. The decision to divest follows a successful Expression of Interest exercise conducted by SGX’s real estate advisor, Jones Lang LaSalle. The sale is part of SGX’s on-going effort to better manage its capital.
The sale includes a leaseback agreement for the existing SGX premises for an initial term of seven years with an option to renew for another three years. The sale is subject to shareholders’ approval and is expected to be completed in approximately 12 weeks. Mr Hsieh Fu Hua, CEO of SGX said, “In view of the buoyant market conditions in the commercial real estate market, it makes sense for SGX to divest our interest in the building.”
He added, “The sale proceeds can be better redeployed for future growth of our core businesses.”
SGX’s net proceeds on disposal of its stake in SGX Centre are approximately S$266.4 million and the excess of the net proceeds over the book value is about S$65.6 million. Details of the sale are available on the announcement made via SGXNET.
