DBS to sell Shenton Way offices for $690 million
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Bank to lease back office space for an initial eight years
SINGAPORE, NOVEMBER 30 2005 - DBS Bank (DBS) announced today that it agreed to sell its Shenton Way office buildings to funds managed by Goldman Sachs for $690 million. The transaction is expected to be completed within a month.
The Shenton Way offices consist of the 49-storey Tower One (completed in 1975) and the 34-storey Tower Two (completed in 1994). The buildings have a net lettable area of approximately 875,000 square feet.
Under the agreement, DBS will lease back the areas that it currently occupies for an initial period of eight years. DBS has a further option to renew the lease for two three-year periods at market rates. As the largest tenant, DBS will retain naming rights for the buildings.
The purchase price of the buildings, and the terms of the lease, were negotiated and agreed on a willing-buyer, willing-seller basis, taking into account market transactions and conditions. The purchase price will be paid in cash, with 10% deposited today and the balance 90% to be paid on completion.
The net book value of the buildings was $240 million as at November 30, 2005.
DBS Group Holdings Vice Chairman and CEO Jackson Tai said: "The sale and leaseback transaction reflects our ongoing efforts to enhance the efficiency of our balance sheet and to re-deploy funds for expansion in a growing Asia; all part of our programme to increase shareholders' return."
About DBS
Headquartered in Singapore, DBS is one of the largest financial services groups in Asia. The largest bank in Singapore and the fifth largest banking group in Hong Kong as measured by assets, DBS has leading positions in consumer banking, treasury and markets, asset management, securities brokerage, equity and debt fund raising. Beyond the anchor markets of Singapore and Hong Kong, DBS serves corporate, institutional and retail customers through its operations in Thailand, Malaysia, Indonesia, India and The Philippines. In China, the bank has branches and representative offices in Shanghai, Beijing, Guangzhou, Shenzhen, Fuzhou, Tianjin and Dongguan. The Bank's "AA-" and "Aa2" credit ratings are among the highest in the Asia-Pacific region. More information about DBS Group Holdings and DBS Bank can be obtained from our website www.dbs.com.
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