22 September 2017
Reporter: Theo Andrew

BlackRock sells Marina Bay office for SGD 2.12 billion

BlackRock has agreed to sell Asia Square Tower 2, in Singapore’s Marina Bay, to CapitaLand Commercial Trust (CTT), for SGD 2.12 billion (US $1.6 billion).

The US-based asset manager is divesting the asset from its BlackRock Asia Property Fund III at SGD 2,689 ($1,995) per square foot, representing a net property income yield of 3.6 percent per annum.

The 46-storey grade-A office building comprises 778,719 square feet of lettable office and retail space. The asset is currently let to 36 office tenants and 24 retail tenants.

CCT plan to fund the acquisition through a SGD 700 million ($500 million) rights issue, an external bank loan of SGD 1.12 billion ($831 million) and the SGD 340.1 million ($253 million) disposition of One George Street, the Golden Shoe Car Park and Wilkie Edge in Singapore.

According to CCT, the acquisition is a move to “rejuvenate CCT’s portfolio with the addition of newer and higher yielding grade-A assets”, as well as taking advantage of a predicted uptick in grade-A office rents in Singapore.

CCT’s portfolio value now totals SGD 10.1 billion ($7.5 billion), with a net lettable area of 3.5 million square feet.

Soo Kok Leng, chairman of CCT, said: “With this acquisition, CCT is now well anchored in all the key sub-markets in Singapore’s Central Business District: Marina Bay, Raffles Place, Tanjong Pagar and City Hall; cementing its position as the largest landlord of prime office assets in Singapore.”

Lynette Leong, CEO of CCT, said: “Market statistics have shown that Singapore’s office market rents have reached a trough; hence, the acquisition will position CCT to benefit from the expected market uptick in grade-A office rents. Given our track record of successful leasing strategies, we will be able to capture further rental income upside from increasing the property’s 88.7 percent occupancy in a rising market.”

More news
The latest news from Real Estate Investment Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
BMO adds nine assets to UK portfolio
23 October 2017 | London | Reporter: Theo Andrew
The properties are spread across the office (35.9 percent), industrial (34.5 percent), retail warehousing (22.5 percent) and retail sectors (7.1 percent), reflecting an initial yield of 4.8 percent
Kennedy Wilson Holdings completes $8 billion merger with European arm
20 October 2017 | California | Reporter: Theo Andrew
The $1.98 billion (£1.5 billion) deal equated to an offer of $15.49 (£11.74) per KWE share, a 20 percent premium on the $12.91 (£9.79) per share closing price on 21 April
Aviva acquires Bristol redevelopment
20 October 2017 | Bristol | Reporter: Becky Butcher
Aviva Investors has purchased the first phase of a redevelopment business park in Bristol for £30 million
Coyote names Rob Bould as non-executive director
19 October 2017 | London | Reporter: Theo Andrew
Rob Bould, who has 40 years of real estate experience, will help grow the data platform, which will track, manage and report the performance of real estate assets in real-time
Hammerson expands flagship Parisian shopping centre
19 October 2017 | Paris | Reporter: Theo Andrew
The 11,000-square metre property adjoins its Les Trois Fontaines centre, the firm’s recently refurbished flagship asset in Paris
SELF II reaches €500 million on third close
19 October 2017 | Paris | Reporter: Theo Andrew
The pan-European debt fund achieved the equity through institutional investors from France, Germany and Italy
Encore+ adds Dutch office for €50 million
18 October 2017 | Eindhoven | Reporter: Theo Andrew
The the pan-European open ended core-plus fund is co-managed by Aviva Investors and LaSalle IM, as fund manager and asset and transition manager, respectively