This global powerhouse asset management firm could never be accused of failing to put their money where their mouth is.
Operating as one of the ‘world’s largest shadow bank’, the asset management firm is trusted to manage more money than most other investment manager in the world. However, with great power comes great responsibility: selling two of the most prestigious office buildings in Singapore.
At the time of the selling, Singapore was suffering from a decreasing market and a widespread increase in vacant properties. On top of that was the challenge of tackling the size and scale of the transaction: one of the largest single asset transactions in Asia. The client needed the sale to be highly lucrative to reflect the coveted location of the asset, its first-class amenities and iconic status.
As the leasing agent and property manager of the office building, the firm knew they were in safe hands with JLL. Our role was to act as ‘experts’ in reiterating the value of the building and generally advising them throughout the potentially difficult transaction. Because of the scale of the operation, the client faced the probability that very few investors globally would have the capacity to engage in such a deal. They needed to open up the opportunity to a broad audience.
We used our extensive platform to access key decision makers and put to use our extensive global network. By marketing both regionally and globally, we covered all potential buyers and were able to simplify the complex transaction, which also made it accessible to new buyers. And with our market insight, we knew that rent in Singapore was due to rise 20-25% in the next couple of years, and so we were able to make investors aware of the excellent value.
We couldn’t have been happier with the result. The sale amounted to be one of the largest office transaction in 2017 - not only in Singapore but the whole of the Asia Pacific region as a whole. The sale caused quite a stir, creating a competitive buzz amongst competitors in the market. The selling process itself piqued enthusiasm from other major global investments, which generally created positive interest for our client.
After a successful sale made to a first-time buyer, JLL and the client together secured the sale of the highly sought-after asset site for a substantial combined price of over $5 billion (for the office and retail component). JLL remain the leasing agent and property manager for this site, and we look forward to working with this profoundly important client on future transactions.