Singapore real estate company, CapitaLand, has agreed to buy Asia Square Tower 2, part of a world-class commercial development in Singapore’s Marina Bay business and financial district. Real estate consultancy JLL advised on the transaction on behalf of the seller, BlackRock Asia Property Fund III.
The sale represents the largest office transaction in both Singapore and the Asia Pacific region in 2017 and is the second largest office transaction globally this year.
“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,” says Stuart Crow, Head of Asia Pacific Capital Markets, JLL.
According to Greg Hyland, Head of Capital Markets, Singapore, JLL, “The Singapore office market is really starting to gain pace and this deal is likely to spur further interest, both domestically and internationally. Investors will be aware that we are at a point in the cycle where there is still the opportunity to get good value, but we expect prices to pick up in the coming quarters as supply starts to taper down between now and the end of 2019.”
The 46-storey Tower 2 has a net lettable area of 778,719 square feet. 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). The entire Asia Square asset, which comprises Tower 1, Tower 2 and the Westin Singapore, achieved a combined sale price of S$5.8 billion (US$4.3 billion). The three elements were sold in 2016, 2017 and 2014 respectively.