Singapore's $2.3b office attracts interest from international tycoons - Singapore News

SINGAPORE: One Raffles Place, one of the most recognisable office developments in Singapore’s central business district, has drawn interest from several potential buyers, according to sources who spoke to Bloomberg.

The property, which is being marketed for more than $2.3 billion (US$1.8 billion), has attracted interest from a range of parties including father-and-son property investors Raj Kumar and Kishin RK, Malaysian developer IOI Properties Group Bhd and Singapore-based asset manager CapitaLand Investment Ltd, Bloomberg reported.

Located in the heart of the financial district, One Raffles Place comprises two office towers and a retail mall. The development is among a growing number of commercial properties in Singapore drawing renewed attention as financing conditions improve and sellers show greater flexibility on pricing.

The majority stake in the complex is held by OUE REIT, which is backed by the Indonesian Riady family. The real estate investment trust owns 81.54 per cent of the property, while United Overseas Bank holds the remaining 18.46 per cent and occupies premises within the development.

In a February exchange filing, OUE REIT said it had begun an exercise with UOB to gauge market interest in the property.

A spokesperson for OUE REIT said the trust would decide on its next steps after evaluating the outcome of the exercise. UOB declined to comment, while representatives for RB Capital, the property firm linked to Raj Kumar and Kishin RK, also declined to comment. CapitaLand Investment and IOI Properties did not respond to requests for comment.

Despite the interest, market observers say the scale of the deal presents challenges. The asking price is considered substantial, making it difficult for a single buyer to complete the acquisition. Similar concerns have surfaced in relation to Marina One, another major city-centre asset that has been linked to a potential sale valued at around $5.7 billion.

Based on the valuation of OUE REIT’s stake at the end of 2025, One Raffles Place was valued at approximately $2.37 billion. The property offers 65,309 square metres, or about 702,980 square feet, of lettable space.

Some potential buyers are also said to be weighing the likelihood of additional redevelopment costs. While parts of the complex benefit from long-term leases stretching centuries into the future, much of the development dates back to the 1980s. One of the towers and a quarter of the retail space are held under long-duration leases, while the remaining tower and 75 per cent of the retail component have leases that expire by the 2080s, according to people familiar with the matter.

IOI Properties, controlled by Malaysian businessman Datuk Lee Yeow Seng, has been steadily expanding its footprint in Singapore through a series of acquisitions. Most recently, the company agreed to acquire Asia Square Tower 2 for $2.48 billion.

CapitaLand Investment, which is backed by Temasek Holdings, manages stakes across multiple REITs and private real estate funds.

Raj Kumar and Kishin RK, meanwhile, are linked to several firms including Royal Holdings and RB Capital, and oversee a property portfolio in Singapore that includes RB Capital Building, located beside One Raffles Place.

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