BlackRock sells Singapore office tower to CapitaLand Commercial Trust for $1.5b

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CapitaLand Commercial Trust, Singapore’s biggest office landlord, agreed to buy BlackRock Inc.’s Asia Square Tower 2 for S$2.1 billion ($1.5 billion) in the city’s second-largest ever sale of an office building.

The transaction will be partially funded by a rights issue of about S$700 million and bank borrowings of about S$1.12 billion, CapitaLand Commercial Trust said in a statement. The company said divestment proceeds of about S$340.1 million from previous property deals will also help fund the purchase.

The sale is the latest in a series of blockbuster commercial property deals in Singapore. Qatar Investment Authority, the gulf state’s wealth fund, last year bought the adjacent Tower 1 from BlackRock for S$3.4 billion in what was Singapore’s biggest office transaction.

“The deal provides another pricing benchmark which reconfirms that the recovery in office rents and prices is well underway in Singapore,” said Jeremy Lake, executive director of capital markets at CBRE Inc. in Singapore. CBRE was one of the advisers to BlackRock.

A Malaysian-led group last 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.

The partial sale of the One George Street office tower will help fund part of the purchase from BlackRock, along with proceeds from sales of the Golden Shoe Car Park and Wilkie Edge, an office and retail complex, CapitaLand Commercial said.

The 46-story Tower 2, spread over 778,719 square feet, includes office space and a Westin hotel. The building has been on the market since last year. The Westin wasn’t a part of the sale.

Bloomberg

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.