Record-Making Deal: Qatar sovereign wealth fund set to purchase Asia Square Tower 1
Mon Jun 06, 2016 10:24:am Business
2.3K By Buchi Obichie
In what is being described as the largest-ever single-tower real estate deal in the Asia-Pacific region; US firm, BlackRock, has agreed to sell a 43-storey office building- the Asia Square Tower 1- in Singapore to Qatar Investment Authority, a sovereign wealth fund, for a record S$3.4 billion.
The tower is located along Marina View at Marina Bay. It boasts more than 1.25 million square feet of net lettable area; and has Citigroup as its anchor tenants.
BlackRock was advised by real estate consultant firms JLL and CBRE.
"Following this flagship transaction, we expect there will be increasing investor interest in Singapore prime office stock in the coming months," Greg Hyland, head of capital markets Singapore at JLL, said in a separate statement.
Singapore is witnessing a bullish trend in its real estate market; and the sale comes as vacancy rates in Singapore's office property sector are nearing their highest level in almost a decade. Amidst slowing economic growth, supply of commercial space is set to rise.
Developers are set to add 4 million square feet of office space in Singapore this year and another 1.4 million next year, said Nicholas Mak, executive director at SLP International Property Consultants.
The tower is located along Marina View at Marina Bay. It boasts more than 1.25 million square feet of net lettable area; and has Citigroup as its anchor tenants.
BlackRock was advised by real estate consultant firms JLL and CBRE.
"Following this flagship transaction, we expect there will be increasing investor interest in Singapore prime office stock in the coming months," Greg Hyland, head of capital markets Singapore at JLL, said in a separate statement.
Singapore is witnessing a bullish trend in its real estate market; and the sale comes as vacancy rates in Singapore's office property sector are nearing their highest level in almost a decade. Amidst slowing economic growth, supply of commercial space is set to rise.
Developers are set to add 4 million square feet of office space in Singapore this year and another 1.4 million next year, said Nicholas Mak, executive director at SLP International Property Consultants.
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