Singapore's Village Prop acquires Bugis Junction Towers for $395 mln

Singaporean real estate solutions company Village Prop. Pte Ltd. has closed on the purchase of the Bugis Junction Towers, a 15-storey office tower located along Victoria Street, facing Rochor Road.

Bugis Junction Towers has approximately a 70-year leasehold land tenure remaining with committed occupancy of 100 percent as of June 30, 2019, and weighted average lease expiration at 6.2 years.

Under the deal, Village Prop paid 547.5 million Singaporean dollars ($395 million) to acquire the property, which was completed in 1994, from Singaporean real estate investment trust company Keppel REIT.

Keppel REIT intends to use the sale proceeds to boost its financial flexibility to continue its distribution per unit, accretive unit buy-back programme, fund growth via reinvestments, distribute capital gains, or reduce credit.