Capital and Commercial trust (CCT) will buy a 46-storey office tower in Singapore’s financial district, for Asia Square Tower 2 for $2.1 billion.
This is the second largest office building sale after the sale of 43-storey tower 1. The deal is undertaken by BlackRock Inc.
Some of the tenants of CCT include Australia Bank and Vodafone.
“Buildings of this quality and prominence are hard to come by, but we expect to see increased interest in Grade A office assets in Singapore off the back of this deal,” said Stuart Crow, head of Asia Pacific capital markets at consultancy JLL.
Asia Square Tower 2 has a net area of 778,719 square feet, while the larger Tower 1 had over 1.25 million square feet.
Jeremy Lake, Executive Director, capital markets at the CBRE real estate services firm revealed that the deal provides another pricing benchmark which reconfirms that the recovery in office rents and prices is well underway. CBRE and JLL advised BlackRock.
“Market statistics have shown that Singapore’s office market rents have reached a trough; hence, the acquisition will position CCT to benefit from the expected market uptick in Grade A office rents,” Lynette Leong, CCT’s Chief executive Officer, said in a statement.
According to reports, Grade A central business district recorded a 1.7% increase in the second quarter marking the first increase in nine quarters.