Alpha Investment Partners Limited (AIP) – which is the property fund management arm of Keppel Land – and NTUC Income have agreed to jointly acquire Capital Square for S$889 million.

Under the deal, Alpha Investment Partners will buy over a 50 per cent stake through its Macro Trends Fund. NTUC Income will hold the other 50 per cent.

Alpha Investment Partners will be the asset manager upon completion of the acquisition.

The two partners said they plan to further enhance Capital Square through various asset enhancement initiatives.

Capital Square is a 16-storey Grade A office tower located within Singapore’s central business district.

It was developed by Keppel Land, but the developer sold off the property in 2002, as part of its divestment plans then.

NTUC Income has been investing in Singapore’s real estate market to generate returns for policyholders.

Just recently, the insurer paid S$101 million for a 49 per cent stake in a prime office property at Collyer Quay.

Source : Channel NewsAsia – 20 Mar 2011