Economy

BlackRock to Sell Singapore Office Tower for US$1.6 Billion

BlackRock to Sell Singapore Office Tower for US$1.6 Billion”

CapitaLand Commercial Trust on Thursday said it would buy Asia Square Tower 2 in Singapore's Marina Bay from BlackRock for about S$2.1 billion. Qatar Investment Authority, the gulf state's wealth fund, a year ago bought the adjacent Tower 1 from BlackRock for S$3.4 billion in what was Singapore's biggest office transaction.

CapitaLand Commercial Trust said it will fund the acquisition with a rights issue and bank loans.

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.

A deal for the 28-storey PwC Building in Singapore's financial district and a stake sale in TripleOne Somerset near the Orchard Road shopping belt mark some of the other recent commercial transactions.

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. DBS Bank Ltd., J.P. Morgan Chase & Co. and HSBC are advising CapitaLand Commercial Trust on the rights issue.

American asset manager BlackRock Inc.

"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".

"(The deal) provides another pricing benchmark which reconfirms that the recovery in office rents and prices is well underway", said Jeremy Lake, executive director, capital markets at the CBRE real estate services firm.

BlackRock's real estate business in Singapore - formerly MGPA before a takoever in 2013 - developed the Asia Square complex after paying a record price for the reclaimed land in 2007.

"One or two owners have been tracking this deal pending making a decision to sell their own building".



Like this

loading...
loading...

Latest


21 September 2017
Cognizant Technology Solutions Corp (CTSH) Scheduled to Post Earnings on Friday
The stock of Cognizant Technology Solutions Corp (NASDAQ:CTSH) earned "Buy" rating by Suntrust Robinson on Thursday, September 10. Since May 8, 2017, it had 0 insider purchases, and 2 sales for $2.10 million activity. $568,100 worth of JPMorgan Chase & Co.

21 September 2017
'Avengers 4' Spoilers: Brie Larson Arrives for Filming ... With Unshaven Chris Evans?
After all, his contract with Marvel has already ended and his future with the studio remains undecided. Rumors persist that some of the Avengers will die in the massive cinematic event.

21 September 2017
Tony Abbott 'headbutted' by man wearing 'Vote Yes' badge in Hobart
Same sex marriage campaigner Rodney Croome condemned the violent attack on Tony Abbott as "beneath contempt". People on both sides of the marriage equality debate are less than impressed with the act of violence.

21 September 2017
Forex - Dollar Climbs Against Other Majors on Fed Statement
The S&P 500 gained two points, or 0.06%, to 2,508, clocking its sixth record closing high in the last seven sessions. FOMC members' median forecast is for GDP of 2.4 percent this year and for it to hover around 2 percent through 2020.

21 September 2017
KPCC urges Centre to bring petroleum products under GST regime
According to official data, from 2015, the growth in the government's revenue from petroleum products has been 25%. Chief minister Vasundhara Raje holds the finance portfolio in BJP-ruled Rajasthan.

21 September 2017
E.ON in advanced talks over Uniper sale
Fortum president and CEO Pekka Lundmark said: "We intend to be a long-term investor in Uniper and we take our responsibility". Fortum said that it was looking to buy E.ON's stake as Uniper's business and competence is highly complementary to it.

21 September 2017
Cookson ousted as Frenchman takes over as world cycling president
The delegates who voted comprised 15 from Europe, nine each from Africa, the Americas and Asia, plus three from Oceania. Cookson had hoped to be voted in for a second four-year term during the UCI congress in Bergen, Norway, on Thursday.

21 September 2017
Yellen fires starting gun on the end of QE
ASIA'S DAY: Japan's benchmark Nikkei 225 added almost 2.0 percent to finish at 20,299.38, coming off a national holiday on Monday. Yellen gives a stock answer about the need to tighten gradually now to avoid a rushed rise in interest rates in the future.

21 September 2017
LHC orders release of Model Town incident inquiry report
Sources said that the Punjab government will file an intra-court appeal after receiving the written copy of LHC's verdict.

21 September 2017
Average Price Target Of 89.15 Issued For Elbit Systems Ltd. (NASDAQ:ESLT)
In the investing realm, using the moving average for technical equity analysis is still very popular among traders and investors. On the other side, a stock may be considered to be in a downtrend if trading below the moving average and sloping downward.