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Singapore-listed ARA Asset Management is said to have won the bid to acquire a stake in Capital Square office tower in the central business district.
In a report by Bloomberg, it is said that ARA is acquiring the 50 percent stake in the 16-storey prime office building that was put up for sale by Alpha Investment Partners last year, said people familiar with the matter.
The source, who requested anonymity since the process is private, revealed that the purchase is expected to be concluded by month-end, without offering details on the price.
Real estate broker Chestertons managing director Donald Han expects Capital Square to fetch around S$2,500 per sq ft, effectively valuing the 50 percent stake in the office building at around S$415 million.
Notably, Singapore’s business district recently witnessed a spate of deals as a large supply of prime space and falling rents pushed valuations lower.
Located in the Raffles Place financial district, Capital Square was completed by developer Keppel Land in 1998. The tower spans over 388,215 sq ft, with tenants including Bloomberg LP, Citigroup and Morgan Stanley.
Alpha and insurer NTUC Income purchased the tower for S$889 million, or about S$2,300 per sq ft, from Munich Re in 2011.
It is noted that in April 2015, Jones Lang LaSalle and CBRE revealed in a joint statement that they have been appointed as marketing agents of Capital Square.
Meanwhile, ARA declined to comment on the matter.
Image: View of Singapore’s central business district.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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