Tuan Sing is buying Westgate Tower in Jurong Lake District for $600 mil
The 90%-occupied tower could strengthen Tuan Sing’s recurring income while its 295 strata units provide flexibility to unlock value through individual sales when conditions permit.
Tuan Sing will acquire Westgate Tower for $600 million, a 6.25% discount to its $640 million valuation, with completion expected on Dec 1, 2026.
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Real estate development, investment and hospitality group Tuan Sing Holdings Limited will purchase premium Grade A office property Westgate Tower in Jurong Lake District at an agreed property value of $600 million — a discount of 6.25% to its latest valuation.
Its wholly-owned subsidiary Greenlane Land has inked a sale and purchase agreement to fully acquire two entities — Westgate Commercial Pte Ltd and Westgate Tower Pte Ltd — that collectively own all the commercial office units in the property located at 1 Gateway Drive.
Westgate Tower spans about 305,000 sq ft of net lettable area across 20 storeys, comprising 295 strata-titled office units with a committed occupancy rate of around 90%.
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It is part of a mixed-use development that includes the seven-storey Westgate Mall, with a site area of 17,589.6 sq m (about 189,333 sq ft) and a 99-year leasehold tenure with about 84 years remaining.
The strata-titled structure will provide Tuan Sing with “significant and rare” flexibility in how it manages and positions the asset over the long term, the Singapore-listed firm said in an Oct 23 bourse filing.
This is given that the strata units can potentially be sold individually to realise and unlock value progressively, or the group could retain them as a whole for stable recurring income, depending on market conditions and its investment strategy.
The established office tenant base also enables the group to generate an additional source of rental income.
With the acquisition, Tuan Sing will strengthen its portfolio of income-generating investment properties in Singapore while increasing the group’s exposure to the Jurong Lake District, which is poised to become the country’s biggest business district outside of the CBD.
Its existing investment property portfolio in the city-state includes 18 Robinson with offices and retail spaces in the CBD, Dunearn Village shopping mall (formerly known as Link@896) on Dunearn Road, and The Oxley commercial and residential development in District 9.
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William Liem, chief executive of Tuan Sing, described it as “a rare opportunity to acquire a high-quality Grade A commercial asset in Singapore at an attractive entry price”.
Westgate Tower’s agreed price tag of $600 million is below the independent valuation of the strata lots of $640 million as at Oct 1, 2026, determined using the income capitalisation method and discounted cash flow analysis. That works out to a discount of 6.25%.
The sellers of the two entities that own the strata units are a consortium comprising Low Keng Huat (Singapore) and Sun Venture Homes.
Back in 2014, the developers of the Westgate retail-and-office project — CapitaLand, CapitaMalls Asia and CapitaMall Trust — had sold the office tower to the consortium for $579.4 million. That translated to about $1,900 psf based on net saleable area.
Tuan Sing said its acquisition is expected to complete on Dec 1, 2026 or such other date as may be agreed between the parties.
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