20 Harbour Drive Sold to Keppel Education Asset Fund for S$160 Million

20 Harbour Drive Sold to Keppel Education Asset Fund for S$160 Million

In a significant real estate transaction, Mapletree Investments has agreed to sell the eight-storey office building located at 20 Harbour Drive for S$160 million.

The buyer is an entity linked to the Keppel Education Asset Fund (KEAF), highlighting a strategic move within the region’s education and real estate sectors.

The deal was finalized in late June through a put-and-call option agreement, with a fully owned unit of Mapletree Investments leading the transaction.

Situated on a 138,835 square foot site, the commercial property boasts a remaining lease tenure of approximately 72 years and three months, initially beginning in December 2000.

Strategic Location and Potential Conversion

Located near the Haw Par Villa MRT station, 20 Harbour Drive currently offers a gross floor area of nearly 250,000 square feet.

This area has potential for further expansion, pending approval from the relevant authorities.

The property is zoned for commercial use under the Urban Redevelopment Authority’s Master Plan, making it a versatile asset in a prime location.

Industry sources suggest that KEAF is considering converting the office building into an international school campus, leveraging the property’s strategic location and ample space.

This potential transformation aligns with KEAF’s mission to enhance educational infrastructure in key Asia-Pacific cities.

KEAF, a pan-Asia value-add education real estate fund, emerged as the ideal candidate, given its focus on working with established education operators to develop sustainable assets and campuses.

According to the Keppel website, KEAF’s general partner aims to capitalize on growing opportunities in the private education sector, driven by globalization, rising wealth, urbanization, and an increasing emphasis on education among middle-income families.

The fund seeks to create a balanced portfolio of stable, brownfield, and greenfield assets across different cities, deploying value-add real estate strategies for its investments.

Mapletree’s Recent Financial Performance

Mapletree Investments, wholly owned by state investment firm Temasek, reported a net loss of S$577.2 million for the financial year ending March 31, contrasting sharply with a net profit of S$1.2 billion in the previous year.

The loss was attributed to a high-interest environment and expansion in real estate capitalization rates, leading to revaluation losses.

In a related move, Mapletree Pan Asia Commercial Trust (MPACT), one of Mapletree’s sponsored real estate investment trusts, announced the divestment of the 19-storey Mapletree Anson office building in Tanjong Pagar for S$775 million.

This transaction reflects a strategic shift as Mapletree navigates industry headwinds and repositions its portfolio.

The sale of 20 Harbour Drive underscores the dynamic nature of Singapore’s real estate market and the growing importance of educational infrastructure in the region.

As KEAF explores the potential conversion of the property into an international school campus, this transaction highlights the synergies between real estate and education sectors in driving sustainable growth and development.