New York-based Blackstone has completed its first major transaction in Singapore since ramping up its real estate business in the city-state.
The firm has agreed a large tenancy with Starhub Ltd which will see the Singaporean-state controlled mobile phone and telephone operator remain in the 405,000 square foot Starhub Green business park for another 10 years. Starhub’s lease is for 220,000 square feet.
The lease, believed to have been secured at a monthly rent of about S$3.60 (€2.09; $2.83) a square foot, was a coup for Blackstone given typical leases for comparable business park office space are understood to run for between three and five years on average.
The lease is also understood to have been the result of various asset management initiatives undertaken by Blackstone after it acquired the property in 2012 from German fund manager SEB Asset Management for $173 million in 2012. Blackstone has invested S$1.5 upgrading the building’s lobby as well as built for it a roof-deck.
The office, which was first occupied by Starhub in 2008, was an early investment in Blackstone’s 2012, Blackstone Real Estate Partners (BREP) VII global opportunity fund, the world’s largest private equity real estate fund with $13.3 billion of commitments.
It remains Blackstone’s only investment in Singapore although the firm last year ramped up its operations in the city with a view to investing more meaningfully in Southeast Asia, including in the city. As part of that effort, the firm transferred one its senior managing directors, Alan Miyasaki, from its Tokyo effort to lead a team that today stands at 30 professionals.
Blackstone declined to comment.