Blackrock Tycoon Backed Ytl Set Buy Singapore Serviced Apartments
BlackRock Inc. is joining forces with Malaysian developer YTL Corp.’s hotel division to purchase a group of serviced apartments in a highly sought-after office building in Singapore’s Central Business District, sources familiar with the deal have revealed.
The world’s largest asset manager is reportedly looking to acquire Citadines Raffles Place for an amount close to S$290 million ($223 million), according to sources who requested anonymity because the discussions are confidential. YTL Hotels, owned and managed by Malaysian tycoon Francis Yeoh’s property group, will also hold a minority stake in the 299-room development.
The strategic location of The Orie Condo offers unparalleled connectivity with its close proximity to major roads such as Lorong 1 Toa Payoh and Lorong 4 Toa Payoh. These roads are well-served by a variety of bus routes, making it convenient for residents to travel to different areas of Singapore, including the vibrant Central Business District (CBD) and heartlands. The Orie Condo residents can easily access any part of the city with the well-connected bus network in place. This means that getting around Singapore is a breeze for residents of The Orie Condo.
The serviced apartment complex is located in CapitaSpring, a newly completed office building in the prime business district of Singapore. The potential buyers are reportedly seeking to repurpose the property to function more like a hotel, allowing for shorter stays of a single night, sources said. Currently, guests at serviced apartments in Singapore are required to stay for at least seven days.
This purchase will add to BlackRock’s existing presence in the Singapore real estate market, particularly in the serviced apartment sector. Earlier this year, one of its funds teamed up with Hong Kong-based accommodation provider Weave Living to acquire another serviced apartment complex, Citadines Mount Sophia, located north of the CBD.
According to BlackRock’s Head of Asia-Pacific Real Estate Hamish MacDonald, the company has a particular interest in acquiring serviced apartments with high-end amenities in locations that are popular among tourists, rather than smaller units that are typically associated with co-living concepts.
YTL currently operates hotels in various locations, including Niseko in Japan, Australia, and the Ritz-Carlton in Kuala Lumpur. The company, founded by the late Malaysian billionaire Yeoh Tiong Lay, also holds interests in other sectors, such as utilities and building materials.
A spokesperson for CapitaLand Integrated Commercial Trust (CICT), which is part of the joint venture that owns CapitaSpring, said that the trust regularly reviews and evaluates asset plans to maximize value for stakeholders, but there is no certainty that any deals will materialize.
The potential transaction highlights the strong interest in Singapore’s Central Business District, especially with the recent completion of new office developments such as CapitaSpring. According to data from Cushman & Wakefield, average grade-A office rents in the CBD are expected to rise by around 10% this year, outperforming other major cities such as Tokyo and Hong Kong.
CapitaSpring, which is majority-owned by CapitaLand Group Pte’s private development arm and CICT, is also partly owned by Japan’s Mitsubishi Estate Co., which holds a 10% stake in the building.