SINGAPORE - Singapore's Asia Square Tower 1 has set the record of being the largest single-asset and office transaction in the Asia-Pacific region with a sale value of US$2.45 billion (S$3.31 billion), according to real estate consultancy JLL.
The 43-storey retail and office building was sold earlier this month by global investment management firm, BlackRock, to Qatar Investment Authority's sovereign wealth fund
According to figures released by JLL, the sale of the property exceeded the previous largest single-asset transaction. Festival Walk, a retail and leisure complex in Hong Kong, was sold to Singapore's Mapletree Investment for US$2.41 billion in 2011.
Stuart Crow, head of Asia Pacific Capital Markets of JLL, said: "This is a highly significant deal on a number of levels. The sale of Asia Square Tower 1 is the largest ever single-tower office transaction in Asia Pacific by a margin of US$700 million, outstripping the sale of Tokyo's Otemachi Tower in 2014. But looking beyond the office sector, this is the biggest en-bloc transaction we've seen in the region since JLL started collecting data in 2004.
"This deal sends a strong signal to the market that Singapore is a choice destination for cross-border investors. There was considerable interest in Asia Square Tower 1 from a range of institutional investors in Asia and beyond, and across a variety of fund types," he added.
Mr Crow also mentioned that given Singapore's strong economic fundamentals and the world-class nature of the property, the transaction does not come as a surprise. In fact, he said, the firm is anticipating some major real estate assets to be transacted in Singapore and the region this year.
Asia Square Tower 1 is located at Singapore's Marina Bay business and financial district and comprises more than 1.2 million square feet of grade A office space and nearly 40,000 square feet of retail space.
This article was first published on July 12, 2016.
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