In probably one of the bigger-scale office lease transactions in the past few months, American International Group, Inc. (AIG) is said to have completed transactions for the lease of five floors (approximately 60,000 square feet) at the newly built South Tower at 78 Shenton Way.

Multinational real estate corporation CB Richard Ellis Group, Inc. (CBRE) is understood to have brokered the said transaction. The California, USA-based firm is the largest commercial real estate services company in the world. It currently manages approximately 1.7 billion square feet of office and building space in various locations worldwide.

Shenton Way is a main road located in the central business district of Singapore. This thoroughfare is best known for the numerous commercial skyscrapers that flank both sides of the street.

AIG, once the 18th-biggest publicly owned company worldwide, has been leasing spaces at two adjoining buildings located along Martin Road near the Robertson Quay area and the Mohamed Sultan Road. The firm will transfer its operations from the two buildings at Martin Road to 78 Shenton Way.

One of AIG’s operations that will be transferred to South Tower is American Home Assurance Company. It is understood that the deal for the lease required some “structuring.”

The owner of 78 Shenton Way, the German firm Commerz Grundbesitz Investmentgesellschaf (CGI), is believed to have assumed the remaining leasehold term of AIG’s Martin Road offices.

CGI is also the owner of 71 Robinson Road, a building it purchased in April 2008 while still being constructed. The company bought 71 Robinson Road for $743.75 million or $3,125 per square foot. The seller for the 2008 transaction was a joint business venture between Kajima Overseas Asia and Lehman Brothers.

CGI’s 2008 transaction for 71 Robinson Road was the firm’s second purchase in Singapore. The company’s first was the purchase of 78 Shenton Way in December 2007 for $650.78 million or $1,860 per square foot.
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