BlackRock, Tycoon-Backed YTL set to buy Singapore serviced apartments
The deal will mark an additional purchase for BlackRock in a property class it has opted for in Singapore. One of its funds bought one more serviced apartment building to the north of the CBD, Citadines Mount Sophia, earlier this year as part of a joint project with Hong Kong-based holiday accommodation firm Weave Living.
BlackRock and CapitaLand Development didn’t quickly respond to emailed requests for remark. YTL Hotels declined to comment. A representative for CICT said the trust regularly checks and evaluates asset plans to make the most of value for unitholders and “there is no assurance of any offers materializing.”
BlackRock Inc. and the accommodation unit of Malaysian builder YTL Corp. are prepared to acquire a group of serviced apartments in a prime office complex in Singapore’s Central Business District, according to people aware of the concern.
BlackRock’s head of Asia-Pacific real estate Hamish MacDonald stated in a meeting last month that it’s concentrating on attaining “high-amenity serviced flats” in Singapore, at areas that are interesting to vacationers, rather than smaller sized units more related to co-living designs.
CapitaSpring is owned by a joint effort led by CapitaLand Group Pte’s exclusive development arm and CapitaLand Integrated Commercial Trust (CICT). Japan’s Mitsubishi Estate Co. keeps a 10% stake.
The world’s largest asset manager is pursuing to acquire the Citadines Raffles Place for just under S$ 290 million ($ 223 million), the people said, requesting not to be determined given that the conversations are exclusive. YTL Hotels, that possesses and manages hotels for Malaysian tycoon Francis Yeoh’s real estate group, will possess a minority claim in the 299-room project.
YTL runs hotels in places involving Japan’s Niseko, Australia and the Ritz-Carlton in Kuala Lumpur. The developer, established by the late billionaire Yeoh Tiong Lay, even has attractions in sectors including utilities and building components.
The establishment stands in CapitaSpring, an office building that was completed in 2021. The customers are seeking to repurpose the estate to be more like an accommodation and allow for single-night stays, consumers stated. Visitors at serviced condominiums in Singapore are at present obligated to reside for a minimum of seven days.
