Bookmark & Share
Singapore-listed ARA Asset Management Ltd is said to be seeking to acquire a stake in Capital Square office tower, reported Bloomberg.
According to the report, ARA is bidding for a 50 percent stake in the 16-storey prime office building that was put up for sale in 2015 by Alpha Investment Partners, Keppel Land Ltd’s investment arm, said people familiar with the matter.
Located within the Raffles Place financial district, Capital Square was acquired in 2011 by insurer NTUC Income and Alpha from Munich Re for S$889 million, or approximately S$2,300 per sq ft.
The transaction will add to the slew of deals registered recently within Singapore’s business district as a large supply of prime office space, and falling rents pushed valuations lower.
Chestertons managing director Donald Han estimates that Capital Square could go for around S$2,500 per sq ft, valuing the half stake at about S$415 million. “Rents have dropped to compelling levels so we are seeing an increase in deal activity,” he said, adding that since the sale will only be for half of the stake, the buyer “won’t get full control and hence the sale cannot get premium pricing.”
In a joint statement, Jones Lang LaSalle and CBRE Group Inc revealed in April 2015 that they were appointed to market Capital Square.
Related Articles:
Singapore slips 4 notches in prime office cost ranking