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BlackRock’s property arm is seeking for buyers for a prime office building it owns in Singapore’s downtown core area, according to media reports.
Asset manager Blackrock is planning to sell Asia Square Tower 1 in a deal that could fetch up to US$3.8 billion (S$4 billion). It is also set to become the republic’s largest real estate transaction this year.
Considered a prized asset given its high occupancy rate and steady revenue inflows, the property is home to major multinational firms like Google, Citigroup and private equity firm KKR.
“The nature of this asset is that it regularly attracts attention and we continually assess the market for the best outcomes for our tenants and investors,” said a BlackRock representative as cited in earlier reports.
BlackRock Real Estate acquired Asia Square Tower 1 from MGPA in 2013. It also took control over the investment firm’s US$12 billion (S$16.17 billion) assets under management, of which about 66 percent are situated within the Asia-Pacific region.
The transaction would be the firm’s second property sale in Singapore for 2015. In January, it disposed AXA Tower for S$1.7 billion to Perennial Real Estate Holdings and its consortium partners.
Meanwhile, CBRE Research revealed in a recent report that the growth of rental income from premium-grade office space in Singapore has decelerated, as it merely increased by 1.8 percent in Q1 2015.
“Rental growth is clearly slowing as a result of moderating demand. Some early impact around the next wave of new development completions scheduled from second half of 2016 onwards may also be contributing to the slowdown,” it added.
CBRE and JLL were appointed to manage the sale. However, both firms did not comment on the said deal.
Image: Asia Square Towers
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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