This article is from the Australian Property Journal archive
SOVEREIGN wealth fund, the Qatar Investment Authority (QIA), has paid S$3.4 billion for the Asia Square Tower 1 – in the largest ever single-tower transaction in Asia Pacific and the second largest globally.
CBRE and JLL managed the transaction on behalf of a BlackRock-advised fund.
Asia Square Tower 1 has the largest floor plate in Marina Bay and is anchor tenant by global financial services giant Citi, along with Julius Baer as well as insurance firm Marsh & McLennan.
CBRE Singapore executive director Jeremy Lake said the buyer and seller can walk away from this deal smiling as both have achieved excellent outcomes.
“We courted some of the world’s largest funds and leading investors for this exercise and without exception, all of them were in agreement that Asia Square is a premium office asset; the building quality and superior location in the expanding Marina Bay are indisputable. Marina Bay is Singapore’s equivalent to London’s Canary Wharf or Shanghai’s Liujiazui,” Lake said.
CBRE Asia Pacific executive chairman Rob Blain said the sale of Asia Square Tower 1 to QIA underlines the strong demand for prime core assets around the world, and the ongoing appeal of real estate as a prized asset class.
JLL has been the sole leasing agent and property manager of Asia Square since it opened in June 2011.
According to data compiled by JLL, the sale represents the largest single-tower real estate transaction in Asia Pacific to date, and the second-largest single-tower real estate transaction globally.
The 43-storey property comprises more than 1.2 million square feet of A-grade office space and nearly 40,000 square feet of retail space.
JLL’s head of Asia Pacific capital markets Stuart Crow said Asia Square is one of the most prestigious commercial developments in the region and represents a rare opportunity to acquire a premium, highly sought-after property in one of Asia’s most important business and financial centres.
JLL’s Singapore head of capital markets Greg Hyland said Singapore continues to be an attractive destination for international investors, thanks to its stable political outlook, superior infrastructure and strong economic fundamentals.
“Following this flagship transaction, we expect there will be increasing investor interest in Singapore prime office stock in the coming months.
“Looking beyond Singapore, we are seeing a growing demand from global investors looking for major single asset opportunities in the region such as Asia Square.” Chow said.
Australian Property Journal
