Qatar sovereign wealth fund to buy Asia Square Tower 1 for record S$3.4b
The sale of the 43-storey office building to Qatar Investment Authority is the largest-ever single-tower real estate deal in the Asia-Pacific region.
Posted 06 Jun 2016 10:28 Updated 06 Jun 2016 12:05
SINGAPORE: BlackRock has agreed to sell a 43-storey office building in Singapore to Qatar Investment Authority, a sovereign wealth fund, for S$3.4 billion, in what the US firm said was the largest-ever single-tower real estate deal in the Asia-Pacific region.
Asia Square Tower 1, located along Marina View at Marina Bay, has more than 1.25 million square feet of net lettable area and has Citigroup as its anchor tenant, BlackRock and Qatar Investment Authority said in a joint statement.
BlackRock was advised by real estate consultant firms JLL and CBRE.
"Following this flagship transaction, we expect there will be increasing investor interest in Singapore prime office stock in the coming months," Greg Hyland, head of capital markets Singapore at JLL, said in a separate statement.
The sale comes as vacancy rates in Singapore's office property sector are nearing their highest level in almost a decade, with the supply of commercial space set to increase amid slowing economic growth.
Developers are set to add 4 million square feet of office space in Singapore this year and another 1.4 million next year, said Nicholas Mak, executive director at SLP International Property Consultants.
BlackRock also owns a second tower in the Asia Square development.
(Reporting by Aradhana Aravindan; Editing by Kenneth Maxwell and Edwina Gibbs)
- Reuters/cy
- wong chee tat :)
Showing posts with label Asia Square Tower. Show all posts
Showing posts with label Asia Square Tower. Show all posts
Monday, June 6, 2016
Thursday, November 5, 2015
CapitaLand pulls out of talks to buy Asia Square Tower 1
CapitaLand pulls out of talks to buy Asia Square Tower 1
The deal, possibly valued at more than S$3.5 billion, would have been Singapore's largest office transaction. On Wednesday, the property developer also announced a 48.3 per cent year-on-year rise in profits.
POSTED: 04 Nov 2015 08:50 UPDATED: 04 Nov 2015 23:04
SINGAPORE: Property developer CapitaLand has pulled out of talks to buy the Asia Square Tower 1 office building - a deal which could have been Singapore's largest office transaction ever.
In an announcement made on the Singapore Exchange website early on Wednesday morning (Nov 4), CapitaLand said that the parties involved have ceased negotiations, but that it would "continue to explore opportunities which fit in the group's strategy and the terms of which allow the group to generate the required returns".
Bloomberg had previously reported that the deal valued Asia Square Tower 1, which is owned by asset manager BlackRock and which counts Citigroup and Swiss private bank Julius Baer among its tenants, at more than S$3.5 billion.
Mr John Saunders, head of Asia-Pacific for BlackRock Real Estate, said talks with other parties are still in progress.
“Asia Square is a trophy grade-A office building in Singapore, often considered as one of Asia’s best such developments, and negotiations with potential buyers of this asset continue," said Mr Saunders.
"While we are not in a position to comment on the details, we are pleased to have received significant global interest in this high-quality asset and are currently working to achieve the best outcome for our investors.”
Property consultancy Chestertons said the failure to close the deal reflects the reluctance of sellers to lower prices, despite weakening office rentals as new supply enters the market.
"The market will see some standstill in terms of the transactions, mainly because we are now entering in a second quarter of drop in terms of rentals. So it hasn't hit the market yet, at least in terms of the sellers," said Mr Donald Han, managing director at Chestertons.
"Sellers are still looking at historical high prices, in anticipation that the rentals they achieved, peak rentals from one to two years ago, would continue to filter through. So I think it would probably take about six to 12 months after we see a continuous drop in terms of prices. I think there will be more negotiation in terms of the seller's point in terms of pricing. Then you will start to see more deals transacting," he added.
On Oct 14, CapitaLand had confirmed that it and other parties were in talks to buy the 43-storey building, but added at the time: “As negotiations with the vendor of Asia Square Tower 1 and the other parties on the terms of the potential transaction are still ongoing, there is no certainty or assurance that any transaction for Asia Square Tower 1 will materialise or that any definitive or binding agreement will result from such negotiations."
On Wednesday, the property developer also reported its third-quarter earnings, with profit after tax and minority interests of S$192.7 million, up 48.3 per cent from the same period a year ago.
Group revenue increase 17.1 per cent in the quarter, which CapitaLand attributed to higher contributions from development projects in China offsetting lower revenue from projects in Singapore and Vietnam.
Sales in China more than doubled year-on-year, with the 2,422 units sold generating about S$800 million.
- CNA/es/xq
- wong chee tat ):
The deal, possibly valued at more than S$3.5 billion, would have been Singapore's largest office transaction. On Wednesday, the property developer also announced a 48.3 per cent year-on-year rise in profits.
POSTED: 04 Nov 2015 08:50 UPDATED: 04 Nov 2015 23:04
SINGAPORE: Property developer CapitaLand has pulled out of talks to buy the Asia Square Tower 1 office building - a deal which could have been Singapore's largest office transaction ever.
In an announcement made on the Singapore Exchange website early on Wednesday morning (Nov 4), CapitaLand said that the parties involved have ceased negotiations, but that it would "continue to explore opportunities which fit in the group's strategy and the terms of which allow the group to generate the required returns".
Bloomberg had previously reported that the deal valued Asia Square Tower 1, which is owned by asset manager BlackRock and which counts Citigroup and Swiss private bank Julius Baer among its tenants, at more than S$3.5 billion.
Mr John Saunders, head of Asia-Pacific for BlackRock Real Estate, said talks with other parties are still in progress.
“Asia Square is a trophy grade-A office building in Singapore, often considered as one of Asia’s best such developments, and negotiations with potential buyers of this asset continue," said Mr Saunders.
"While we are not in a position to comment on the details, we are pleased to have received significant global interest in this high-quality asset and are currently working to achieve the best outcome for our investors.”
Property consultancy Chestertons said the failure to close the deal reflects the reluctance of sellers to lower prices, despite weakening office rentals as new supply enters the market.
"The market will see some standstill in terms of the transactions, mainly because we are now entering in a second quarter of drop in terms of rentals. So it hasn't hit the market yet, at least in terms of the sellers," said Mr Donald Han, managing director at Chestertons.
"Sellers are still looking at historical high prices, in anticipation that the rentals they achieved, peak rentals from one to two years ago, would continue to filter through. So I think it would probably take about six to 12 months after we see a continuous drop in terms of prices. I think there will be more negotiation in terms of the seller's point in terms of pricing. Then you will start to see more deals transacting," he added.
On Oct 14, CapitaLand had confirmed that it and other parties were in talks to buy the 43-storey building, but added at the time: “As negotiations with the vendor of Asia Square Tower 1 and the other parties on the terms of the potential transaction are still ongoing, there is no certainty or assurance that any transaction for Asia Square Tower 1 will materialise or that any definitive or binding agreement will result from such negotiations."
On Wednesday, the property developer also reported its third-quarter earnings, with profit after tax and minority interests of S$192.7 million, up 48.3 per cent from the same period a year ago.
Group revenue increase 17.1 per cent in the quarter, which CapitaLand attributed to higher contributions from development projects in China offsetting lower revenue from projects in Singapore and Vietnam.
Sales in China more than doubled year-on-year, with the 2,422 units sold generating about S$800 million.
- CNA/es/xq
- wong chee tat ):
Wednesday, October 14, 2015
CapitaLand confirms talks to buy Asia Square Tower 1
CapitaLand confirms talks to buy Asia Square Tower 1
The deal involving the consortium of property developer CapitaLand and the Norwegian sovereign wealth fund could value Asia Square Tower 1 at more than S$3.5 billion, reports Bloomberg News.
POSTED: 14 Oct 2015 17:00
SINGAPORE: Southeast Asia's biggest property developer, CapitaLand, on Wednesday (14 Oct) confirmed news reports that it was involved in talks to buy the Asia Square Tower 1 office building.
Its statement to the stock exchange came a day after Bloomberg News said a consortium of Norway's sovereign wealth fund and CapitaLand has been chosen as the preferred bidder for the 43-storey office building in Singapore's central business district. Bloomberg said the deal could value Asia Square Tower 1 at more than S$3.5 billion.
CapitaLand said that as discussions are still ongoing, there is no certainty that a transaction will materialise.
Should the deal proceed, CapitaLand said it anticipates drawing upon internal sources of funds and available credit lines. As of Jun 30, 2015, CapitaLand had about S$3.5 billion in cash and cash equivalents and approximately S$3.1 billion in available undrawn credit facilities.
Asia Square Tower 1, which is owned by asset manager BlackRock, counts Citigroup and Swiss private bank Julius Baer among its main tenants.
- CNA/xq
- wong chee tat :)
The deal involving the consortium of property developer CapitaLand and the Norwegian sovereign wealth fund could value Asia Square Tower 1 at more than S$3.5 billion, reports Bloomberg News.
POSTED: 14 Oct 2015 17:00
SINGAPORE: Southeast Asia's biggest property developer, CapitaLand, on Wednesday (14 Oct) confirmed news reports that it was involved in talks to buy the Asia Square Tower 1 office building.
Its statement to the stock exchange came a day after Bloomberg News said a consortium of Norway's sovereign wealth fund and CapitaLand has been chosen as the preferred bidder for the 43-storey office building in Singapore's central business district. Bloomberg said the deal could value Asia Square Tower 1 at more than S$3.5 billion.
CapitaLand said that as discussions are still ongoing, there is no certainty that a transaction will materialise.
Should the deal proceed, CapitaLand said it anticipates drawing upon internal sources of funds and available credit lines. As of Jun 30, 2015, CapitaLand had about S$3.5 billion in cash and cash equivalents and approximately S$3.1 billion in available undrawn credit facilities.
Asia Square Tower 1, which is owned by asset manager BlackRock, counts Citigroup and Swiss private bank Julius Baer among its main tenants.
- CNA/xq
- wong chee tat :)
Thursday, June 27, 2013
Singapore's office rental market expected to go up
Singapore's office rental market expected to go up
By Toni Waterman
POSTED: 26 Jun 2013 11:24 PM
Singapore's office rental market is on the rebound after bottoming out in the last quarter of 2012, according to Cushman & Wakefield.
SINGAPORE: Singapore's office rental market is on the rebound after bottoming out in the last quarter of 2012, according to Cushman & Wakefield.
In its quarterly office market report, the real estate firm said rents are on the rise and vacancies are drying up, though not all office buildings are sharing the comeback.
Cushman & Wakefield's latest office market report showed that the average rent in prime Grade A locations was up 4.2 per cent in the second quarter, from a quarter earlier, hitting S$9.03 a square foot per month.
That was up from S$8.99 per square foot per month in the first quarter of this year.
Sigrid Zialcita, managing director of research for the Asia Pacific at Cushman & Wakefield, said: "We are expecting rents to go up across the board on the back of very solid demand.
"We're not going to see the spikes we've seen in the 2007-2008 time frame, where rents went as high as S$18-S$19 a foot."
The report showed that all the CBD submarkets saw average rents appreciate, with Marina Bay and Shenton Way seeing a 9 per cent rise in rents. In the fringe area, Orchard Road's average rents moved up by around 4.6 per cent quarter-on-quarter.
The average rent in the suburban submarket rose slightly -- by 1.3 per cent quarter-on-quarter -- to S$5.64 psf per month.
Vacancy rates for Grade A office space is also improving -- dropping to 3.7 per cent in the second quarter from 5.0 per cent in the first quarter.
Vacancies at Marina Bay shrank to 3.6 per cent in Q2, from 5.6 per cent a quarter ago and 12.1 per cent a year ago. Raffles Place had an overall vacancy rate of 5.5 per cent, while Shenton Way's vacancy rate stood at 4.9 per cent.
Experts said diversity in the tenant pool has helped fill the office space.
"Long gone are purely financial institutions," said Desmond Sim, associate director of CBRE Research. "You have complimentary services like insurance, you've got legal all coming in to take up Grade A stock within Marina Bay and Raffles Place."
Also helping the office rental market is the limited new supply coming to the market.
Mr Sim said: "This year, we have the Asia Square Tower II coming on stream. Next year, we have CapitaGreen that will come on stream. Then we actually have a break of no Grade A product coming in 2015.
"So if someone is trying to take advantage of the current low Grade A rents, they might realize the Grade A stock coming online is quite limited."
One place where vacancies are not falling is in the suburbs, where vacancies are expected to rise to over 8 per cent through 2014.
The suburban vacancy rate was 2.7 per cent in 2012, and is expected to rise to 6.0 per cent this year and hit 8.2 per cent in 2014.
Sigrid Zialcita said: "In the suburbs, we're going to see some massive projects delivered and add space, but again we don't think it's a huge concern for the market because the take up we've seen has been brisk, and going forward we see very healthy leasing occurring in this properties."
There will be more options, but not necessarily better prices, as experts said despite rising vacancies, rental rates in the suburbs will remain stable at around S$5.50 per square foot this year to 2014.
- CNA/al
- wong chee tat :)
By Toni Waterman
POSTED: 26 Jun 2013 11:24 PM
Singapore's office rental market is on the rebound after bottoming out in the last quarter of 2012, according to Cushman & Wakefield.
SINGAPORE: Singapore's office rental market is on the rebound after bottoming out in the last quarter of 2012, according to Cushman & Wakefield.
In its quarterly office market report, the real estate firm said rents are on the rise and vacancies are drying up, though not all office buildings are sharing the comeback.
Cushman & Wakefield's latest office market report showed that the average rent in prime Grade A locations was up 4.2 per cent in the second quarter, from a quarter earlier, hitting S$9.03 a square foot per month.
That was up from S$8.99 per square foot per month in the first quarter of this year.
Sigrid Zialcita, managing director of research for the Asia Pacific at Cushman & Wakefield, said: "We are expecting rents to go up across the board on the back of very solid demand.
"We're not going to see the spikes we've seen in the 2007-2008 time frame, where rents went as high as S$18-S$19 a foot."
The report showed that all the CBD submarkets saw average rents appreciate, with Marina Bay and Shenton Way seeing a 9 per cent rise in rents. In the fringe area, Orchard Road's average rents moved up by around 4.6 per cent quarter-on-quarter.
The average rent in the suburban submarket rose slightly -- by 1.3 per cent quarter-on-quarter -- to S$5.64 psf per month.
Vacancy rates for Grade A office space is also improving -- dropping to 3.7 per cent in the second quarter from 5.0 per cent in the first quarter.
Vacancies at Marina Bay shrank to 3.6 per cent in Q2, from 5.6 per cent a quarter ago and 12.1 per cent a year ago. Raffles Place had an overall vacancy rate of 5.5 per cent, while Shenton Way's vacancy rate stood at 4.9 per cent.
Experts said diversity in the tenant pool has helped fill the office space.
"Long gone are purely financial institutions," said Desmond Sim, associate director of CBRE Research. "You have complimentary services like insurance, you've got legal all coming in to take up Grade A stock within Marina Bay and Raffles Place."
Also helping the office rental market is the limited new supply coming to the market.
Mr Sim said: "This year, we have the Asia Square Tower II coming on stream. Next year, we have CapitaGreen that will come on stream. Then we actually have a break of no Grade A product coming in 2015.
"So if someone is trying to take advantage of the current low Grade A rents, they might realize the Grade A stock coming online is quite limited."
One place where vacancies are not falling is in the suburbs, where vacancies are expected to rise to over 8 per cent through 2014.
The suburban vacancy rate was 2.7 per cent in 2012, and is expected to rise to 6.0 per cent this year and hit 8.2 per cent in 2014.
Sigrid Zialcita said: "In the suburbs, we're going to see some massive projects delivered and add space, but again we don't think it's a huge concern for the market because the take up we've seen has been brisk, and going forward we see very healthy leasing occurring in this properties."
There will be more options, but not necessarily better prices, as experts said despite rising vacancies, rental rates in the suburbs will remain stable at around S$5.50 per square foot this year to 2014.
- CNA/al
- wong chee tat :)
Thursday, June 30, 2011
62% of office space at Asia Square Tower 1 leased out
62% of office space at Asia Square Tower 1 leased out
By Jonathan Peeris | Posted: 28 June 2011 1837 hrs
SINGAPORE : Asia Square Tower 1, located at Shenton Way, has already leased out 62 per cent of its office space and pre-let more than half of the building.
The developers of the building, MGPA, gave the update after it was awarded its Temporary Occupation Permit (TOP) on June 21.
MGPA said it was awarded the land parcel in September 2007 and construction was completed in less than four years, making it the fastest development of this scale in Singapore to achieve completion within the time frame.
Asia Square Tower 1 comprises close to 1.3 million square feet of Grade A office space across 43 floors.
Among its future tenants are Google, Julius Baer, Lloyd's of London, Marsh & McLennan Companies and Citic Bank.
Its largest tenant, Citibank, will move in this September, with its retail branch operational by November.
Another important element of Asia Square is the food & beverage and retail space which is close to being fully leased out.
The Pure Fitness Centre will be the largest gym and fitness facility in the CBD, taking up 32,300 square feet of space, with the latest in fitness technology and training programmes.
Meanwhile, the fourth quarter of 2013 will see the completion of Asia Square Tower 2, which will add about 800,000 square feet of Grade A office space and a 305-room luxury five-star hotel under the Westin brand.
- CNA/al
- wong chee tat :)
By Jonathan Peeris | Posted: 28 June 2011 1837 hrs
SINGAPORE : Asia Square Tower 1, located at Shenton Way, has already leased out 62 per cent of its office space and pre-let more than half of the building.
The developers of the building, MGPA, gave the update after it was awarded its Temporary Occupation Permit (TOP) on June 21.
MGPA said it was awarded the land parcel in September 2007 and construction was completed in less than four years, making it the fastest development of this scale in Singapore to achieve completion within the time frame.
Asia Square Tower 1 comprises close to 1.3 million square feet of Grade A office space across 43 floors.
Among its future tenants are Google, Julius Baer, Lloyd's of London, Marsh & McLennan Companies and Citic Bank.
Its largest tenant, Citibank, will move in this September, with its retail branch operational by November.
Another important element of Asia Square is the food & beverage and retail space which is close to being fully leased out.
The Pure Fitness Centre will be the largest gym and fitness facility in the CBD, taking up 32,300 square feet of space, with the latest in fitness technology and training programmes.
Meanwhile, the fourth quarter of 2013 will see the completion of Asia Square Tower 2, which will add about 800,000 square feet of Grade A office space and a 305-room luxury five-star hotel under the Westin brand.
- CNA/al
- wong chee tat :)
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