Just like that, SG produced APAC’s largest single-tower real estate deal
Just like that, SG produced APAC’s largest single-tower real estate deal
The skyscraper deal is worth SGD3.4 billion (USD2.5 billion)
In an unprecedented move, a Qatar sovereign wealth fund will snap up a Singapore skyscraper for SGD3.4 billion (USD2.5 billion), a record deal despite Singapore’s oversupplied office market.
Qatar Investment Authority will add the 43-storey Asia Square Tower 1 to its portfolio from asset manager BlackRock. With a selling price of SGD2,700 (USD1,980) per sqft, the tower’s sale is being billed as the largest single-tower real estate transaction in Asia-Pacific.
The deal is also, by many accounts, an oddity, given Singapore’s current office stock glut. Vacancy rates for the city-state’s office rental sector are near peak levels in almost a decade.
On top of this, 4 million sqft of office space are set to be added this year, with another 1.4 million coming next year, according to SLP International Property Consultants, as reported by Reuters.
One of two towers by BlackRock in Singapore’s Asia Square development, Asia Square Tower 1 offers more than 1.25 million square feet of net lettable area. The building is reportedly almost 90 percent leased and has Citigroup for its anchor tenant.
“Following this flagship transaction, we expect there will be increasing investor interest in Singapore prime office stock in the coming months,” said Greg Hyland, head of capital markets Singapore at Jones Lang LaSalle, which advised BlackRock in the transaction.
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Source: Property Report