Munich Ergo Asset Management (MEAG) has announced the EUR 500 mln sale of Capital Square in Singapore in the largest office property transaction in Singapore so far this year. The buyer is a local consortium of bidders including Keppel Land's real estate fund management arm, Alpha Investment Partners, and NTUC Income.

The property was acquired in 2002 for S$505 mln (EUR 283 mln) and has since been managed by MEAG Pacific Star Asset Management, a joint venture between Pacific Star and MEAG.

The 16-storey office tower is located at the centre of the nation's business district and offers roughly 36,000 m2 of space accommodating local offices of Morgan Stanley, Citigroup and Bloomberg. The sales price amounted to more than EUR 13,800 per m2. Australia & New Zealand Banking Group (ANZ) is the sole arranger for the financing of this transaction.

MEAG appointed C&W as sole and exclusive selling agent. 'We marketed this property via our global platform in UK, North America, Europe, Middle East and throughout Asia Pacific. Given the particularly high value range of this property, there is astonishing appetite from global investors for Asia and in particular Singapore at this time,' said John Stinson, managing director of Capital Markets, Asia Pacific at C&W. 'It is surprising the depth of capital now available for the Asia Pacific markets. He said there are investors seeking opportunities that we have not seen for some time or we are seeing for the very first time from all corners of the globe,' added Stinson.

MEAG is the asset management arm of Munich Re, the world's largest reinsurer, and Ergo. MEAG currently manages assets of EUR 207 bn, around EUR 10 bn of which in real estate.