Blackrock Tycoon Backed Ytl Set Buy Singapore Serviced Apartments
BlackRock Inc. and YTL Corp.’s hotel unit have reportedly joined forces to acquire a group of serviced apartments in Singapore’s prime Central Business District. According to sources familiar with the matter, the world’s largest asset manager is looking to purchase the Citadines Raffles Place for approximately S$290 million ($223 million). YTL Hotels, which manages hotels for Malaysian tycoon Francis Yeoh’s property group, will hold a minority stake in the 299-room development.
The serviced apartments are located in CapitaSpring, a newly completed office building. The buyers plan to transform the property into a hotel-style accommodation, allowing for shorter stays of one night instead of the current minimum requirement of seven days for serviced apartments in Singapore.
CapitaSpring is owned by a joint venture led by CapitaLand Group Pte’s private development arm and CapitaLand Integrated Commercial Trust (CICT), with Mitsubishi Estate Co. holding a 10% stake. Both BlackRock and CapitaLand Development did not respond to requests for comment, while YTL Hotels declined to comment. A spokesperson for CICT stated that the trust regularly reviews and evaluates asset plans and there is no guarantee of any deals being finalized.
This acquisition is another addition to BlackRock’s portfolio of serviced apartments in Singapore, which has been a preferred asset class for the company. Earlier this year, BlackRock’s fund, in partnership with Hong Kong-based accommodation provider Weave Living, acquired Citadines Mount Sophia, another serviced apartment complex located north of the CBD.
In an interview last month, BlackRock’s head of Asia-Pacific real estate, Hamish MacDonald, stated that the company is focusing on acquiring serviced apartments with high-end facilities, located in areas popular with tourists, rather than smaller units typically associated with co-living concepts.
YTL currently operates hotels in Japan, Australia, and the Ritz-Carlton in Kuala Lumpur. The company, founded by Yeoh Tiong Lay, also has interests in utilities and building materials. With the latest acquisition in the works, CapitaSpring’s property listings have seen a surge in interest. Investors are advised to compare prices between HDBs, condos, and landed properties, as well as between new sale condos and executive condos (ECs). They should also consider properties in the same district as CapitaSpring, which is District 1, and compare the total number of units in the development.
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