Morgan Stanley Private Equity Asia (MSPEA) has agreed to acquire 59.8% of the total outstanding shares of SGX-listed APAC Realty, a real estate services company in Asia, for S$129.5 million.
NHPEA Ace Realty Company Limited, a wholly-owned subsidiary of a private equity fund managed by Morgan Stanley Private Equity Asia, will acquire the 59.8% shares from Asia Pacific Realty Holdings, an entity controlled by the Northstar Group (Northstar), a Singapore headquartered private equity firm.
APAC Realty is one of the real estate services providers, holding the exclusive ERA regional master franchise rights for 17 countries in Asia Pacific.
APAC Realty is MSPEA’s first and only investment in real estate services sector in Southeast Asia.
Andrew Hawkyard, Co-Chief Investment Officer of MSPEA, Managing Director of Morgan Stanley and Director of the Offeror, said, “We are delighted to invest in APAC Realty and look forward to working closely with its highly regarded professional management team to support the company as it continues on its trajectory as a leading real estate brokerage business in Asia. The company has a proven 40-year track record running the business in Southeast Asia with over 20,000 dedicated advisors providing outstanding property brokerage services to its clients. APAC Realty is one of a limited number of real estate brokerages with true Asia Pacific brand recognition and footprint. MSPEA will help to further build on this solid foundation and support APAC Realty’s growth by leveraging our global network and extensive experience of growing businesses across Asia. We believe our partnership with APAC Realty and its management team will bring significant benefits to all stakeholders of the company, including customers, developers, advisors, employees and shareholders.”
Marcus Chu, Chief Executive Officer, APAC Realty, said, “MSPEA has an outstanding track-record and reputation in Asia and I am confident they will be an excellent new partner for APAC Realty. The company’s lead-generation and our team of advisors will benefit from MSPEA’s substantial networks and access to industry insights, which could facilitate a deepening of our regional footprint. This is an incredible time to be at APAC Realty and I look forward to working with MSPEA to further develop the business and continue to support and grow our company in Singapore and the Asia Pacific region.”
Wong Chee-Yann, Chief Investment Officer, Northstar Group, said, “The APAC Realty team has been a great partner for Northstar over the past nine years and we are proud to have supported the team in doubling their number of advisors, progressing their regional expansion and enhancing their tech capabilities, all through the implementation of multiple rounds of Singapore real estate market cooling measures. The successful listing of the company on the SGX in 2017 was a significant highlight. We are confident that Morgan Stanley Private Equity will continue to provide strong support to the APAC Realty team to take the business to the next level.”