BlackRock Asia Property Fund III has finalized its sale of Asia Square Tower 2 to CapitaLand Commercial Trust, a Singapore real estate company, for S$2.09 billion making it the largest office transaction in Asia Pacific this year.
According to Stuart Crow of JLL, the leasing and property manager of Asia Square, the sale of Asia Square Tower 2 continues the trend of buyers being attracted to mega deals in Asia. The sales process generated strong interest from major global investors and sends a clear message about the continued recovery of the Singapore office market.
Asia Square Tower 2 is a 46-storey commercial building and is part of a world-class commercial development in Singapore’s Marina Bay business and financial district and has a net leasing area of 778,700 square feet. Major international financial institutions have moved into the tower include Allianz, Mizuho, Mitsui, National Australia Bank and Westpac.
The entire Asia Square asset, which comprises Tower 1, Tower 2 and the Westin Singapore, has achieved a combined sale price of S$5.8 billion (US$4.3 billion). Asia Square Tower 1 was sold in June 2016 to sovereign wealth fund Qatar Investment Authority for S$3.4 billion (US$2.45 billion) while Westin Singapore was sold in 2014 to Japan-based property developer and investor Daisho Group.