CapitaLand confirms talks to buy Asia Square Tower 1

SINGAPORE — CapitaLand confirmed yesterday that it and other parties are in talks to buy Asia Square Tower 1 from BlackRock, the world’s largest asset manager.

Media reports said BlackRock is seeking about S$4 billion for the 43-storey building in the Marina Bay area. Tenants include Citigroup.

CapitaLand said in a statement that if the deal proceeds, it would be financed with internal funds and available credit lines. It has about S$3.5 billion in cash and cash equivalents, and about S$3.1 billion in available undrawn facilities as of end-June.

“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,” CapitaLand said.

A deal of at least US$2.5 billion (S$3.47 billion) would be Singapore’s largest office transaction, surpassing Keppel Land’s 2011 sale of a controlling stake in Ocean Financial Centre, according to data from New York research firm Real Capital Analytics.

Average monthly gross CBD office rents fell 4.1 per cent in the third quarter from the previous three months, according to consultancy DTZ. Rents could fall as much as 7 per cent this year and a further 8 per cent in 2016, as demand and the economy slow, Mr Lee Nai Jia, regional head of research for South-east Asia at DTZ, said earlier this month. Agencies