Singapore's Axa Tower is the subject of one of the only major commercial transactions to occur in the country this year after a 50 per cent stake in the building was sold to Alibaba.

A consortium led by Singapore's Perennial Real Estate Holdings announced it had entered into a share purchase agreement with the e-commerce company that valued the tower at $1.7 billion.

JLL acted as the exclusive capital markets advisor to Alibaba for the transaction.

Situated within the Great Southern Waterfront, AXA Tower is a 50-storey landmark Grade ‘A’ office development with a retail podium within Singapore’s Central Business District.

At a glance:

• A half stake in Singapore's AXA Tower has been sold to e-commerce company Alibaba in a deal that valued the building at $1.7 billion
• AXA Tower is a 50-storey landmark Grade ‘A’ office development with a retail podium within Singapore’s Central Business District. 
•  JLL acted as the exclusive capital markets advisor to Alibaba for the transaction.

Perennial currently indirectly owns an effective 31.2 per cent stake in AXA Tower.

Based on Urban Redevelopment Authority’s Master Plan 2019, approval has been secured for an uplift in its gross plot ratio which would increase the development’s existing Gross Floor Area from approximately 1.05 million sq ft to approximately 1.24 million sq ft.

Approval has also been obtained to further increase AXA Tower’s GFA to 1.55 million sq ft should it integrate hotel and residential usage under the CBD Incentive Scheme.

Perennial CEO Pua Seck Guan said the sale aligned with the company's capital recycling strategy to deliver a divestment gain, while retaining our involvement to create value via the redevelopment of the prime property.

"Alibaba is already an anchor tenant at AXA Tower, and we are pleased to have their support in creating an iconic landmark in Singapore’s CBD," he said.

According to a statement on PREH website, upon completion of the Sale and the Share Transfer (together, the “Transaction”), which is expected to take place around June 2020, Perennial Newco and Alibaba Singapore will enter into a joint venture agreement for the redevelopment of AXA Tower.

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