The buyers are seeking to repurpose the property to be more like a hotel and allow for single-night stays. — Bloomberg
PETALING JAYA: BlackRock Inc and the hotel unit of Malaysian developer YTL Corp are set to purchase a group of serviced apartments in a prime office building in Singapore’s Central Business District, according to people familiar with the matter.
The world’s largest asset manager is seeking to buy the Citadines Raffles Place for just under S$290mil, the people said, asking not to be identified because the discussions are private. YTL Hotels, which owns and manages hotels for Malaysian tycoon Tan Sri Francis Yeoh’s property group, will hold a minority stake in the 299-room development.
The facility is located in CapitaSpring, an office building that was completed in 2021.
The buyers are seeking to repurpose the property to be more like a hotel and allow for single-night stays, the people said.
Guests at serviced apartments in Singapore are currently required to stay for at least seven days.
CapitaSpring is owned by a joint venture led by CapitaLand Group Pte’s private development arm and CapitaLand Integrated Commercial Trust. Japan’s Mitsubishi Estate Co holds a 10% stake.
BlackRock and CapitaLand Development didn’t immediately respond to emailed requests for comment. YTL Hotels declined to comment. A spokesperson for CICT said the trust regularly reviews and evaluates asset plans to maximise value for unitholders.
The transaction will mark another purchase for BlackRock in an asset class it has favoured in Singapore. — Bloomberg
