CapitaLand office REIT acquires Asia Square Tower 2 for SGD2 billion

CapitaLand Commercial Trust (CCT) is acquiring Asia Square Tower 2 in Marina Bay from USA private equity giant BlackRock for $2.09 billion, or $2,689 per sq ft.

The deal for Asia Square Tower 2 marks Singapore’s second-largest office building sale after that of 43-storey Tower 1, which BlackRock sold a year ago to the Qatar Investment Authority for $2.5 billion.

The REIT will however, exclude the hotel premises, which are now owned by an unrelated third party, in this acquisition, said CapitaLand Commercial Trust.

The company plans to divestment its stakes in One George Street, Golden Shoe Car Park and Wilkie Edge to raise proceeds of about S$340.1 million, it said in a statement.

USA asset manager BlackRock Inc. plans to sell an office building in the heart of Singapore’s business district to a local real-estate investment trust for 2.15 billion Singapore dollars (US$1.59 billion).

The sale is the latest in a series of blockbuster commercial property deals in Singapore.

CCT will buy Tower 2, whose tenants include National Australia Bank and Vodafone, for S$2,689 per square foot. CBRE was one of the advisers to BlackRock.

The property will be acquired from a BlackRock Asia Property Fund III, and is expected to generate a net property income (NPI) yield of 3.6% based on a committed occupancy rate of 88.7% as at 30 June 2017, said the REIT.

A Malaysian-led group past year paid S$2.6 billion for a rare plot in the Marina Bay district, while FWD Group, an insurance company backed by Hong Kong billionaire Richard Li, in May bought a 50 percent stake in One George Street from CapitaLand Commercial Trust for S$592 million.

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