Alibaba buys a 50% stake in a Singapore office tower in a deal valuing the property at $1.2 billion.

Chinese e-commerce giant Alibaba Group Holding Ltd. has bought a 50% stake in a Singapore office tower in a deal valuing the property at S$1.68 billion ($1.2 billion).

The agreement was struck with a consortium led by Perennial Real Estate Holding Ltd., with the sale expected to close around June, according to a statement Wednesday.

Alibaba and Perennial will then create a joint-venture to redevelop the 50-story building, AXA Tower, located in the city’s financial district.

Approval has already been granted to increase the building’s floor space to 1.24 million square feet from 1.05 million square feet. Alibaba is an anchor tenant of the building.

“Singapore is an important market for Alibaba,” a spokesman for the company said. “This investment will help fulfill our projected business needs across the Alibaba digital economy as we continue to strengthen operations in Singapore.”