The Blackstone Group has bought a business park in Singapore from Germany’s SEB Asset Management. This marks the first acquisition the New York-based private equity and real estate giant has made in the Southeast Asian city-state.
Sources familiar with the matter have confirmed a report by Reuters that Blackstone acquired the StarHub Green project, located at 67 Ubi Avenue 1, for S$215 million ($173 million). Blackstone bought the 400,000-square-foot business park on behalf of its latest global opportunity real estate fund, Blackstone Real Estate Partners VII. Blackstone declined to comment.
Singapore-based mobile phone and television operator StarHub, which is majority owned by sovereign wealth fund Temasek Holdings, is the anchor tenant in the building. SEB, which held the business park in an open-ended real estate fund, was facing redemptions and opted to liquidate the asset. The firm had been trying to sell the property for some time. At press time, representatives from SEB could not be reached for comment.
News of this sale immediately follows the announcement that SEB has decided to dissolve SEB ImmoInvest, an open-ended real estate fund focused primarily on Germany. The firm chose to close that vehicle for redemptions after an inability to secure liquidity.
Meanwhile, Blackstone recently established an office in Singapore. That office expects to house a private equity real estate team soon.