Singapore-listed CapitaLand Commercial Trust is acquiring Asia Square Tower 2 for SGD2.09 billion, the office REIT announced on 21 September after calling for a trading halt of its units on the Singapore Exchange earlier in the day.
The transaction has been described by JLL as the largest office transaction in the Asia-Pacific region for 2017.
Asia Square Tower 2 is a 46-storey office tower comprising of Grade A office spaces, part of which is currently occupied by The Westin Singapore, and integrated with retail amenities.
The REIT will however, exclude the hotel premises, which are currently owned by an unrelated third party, in this acquisition, said CapitaLand Commercial Trust.
Asia Square Tower 2 was completed in September 2013, and features net lettable area (NLA) of 778,719 square feet.
The property will be acquired from a BlackRock Asia Property Fund III, and is expected to generate a net property income (NPI) yield of 3.6% based on a committed occupancy rate of 88.7% as at 30 June 2017, said the REIT.
CapitaLand Commercial Trust has described the acquisition as one that is in line with its portfolio reconstitution strategy, given the addition of newer and higher yielding Grade A assets.