CapitaLand Commercial Trust, Singapore’s biggest office landlord, agreed to buy BlackRock's Asia Square Tower 2 for S$2.1 billion ($1.5 billion) in the city’s second-largest ever sale of an office building.
Bloomberg News reports that the transaction will be partially funded by a rights issue of about S$700 million and bank borrowings of about S$1.12 billion, CapitaLand Commercial Trust said in a statement. The company said divestment proceeds of about S$340.1 million from previous property deals will also help fund the purchase.
The sale is the latest in a series of blockbuster commercial property deals in Singapore. Qatar Investment Authority, the gulf state’s wealth fund, last year bought the adjacent Tower 1 from BlackRock for S$3.4 billion in what was Singapore’s biggest office transaction.
“The deal provides another pricing benchmark which reconfirms that the recovery in office rents and prices is well underway in Singapore,” said Jeremy Lake, executive director of capital markets at CBRE Inc. in Singapore. CBRE was one of the advisers to BlackRock.
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