Asia Square could sharpen CCT's edge

CAPITALAND Group, including its office real estate investment trust CapitaLand Commercial Trust (CCT), was one of the earliest to eye Asia Square, a completed Grade A office development owned by a BlackRock-managed fund.

Following the close of an expression of interest (EOI) exercise for the development's 43-storey Tower 1 last August, a consortium that included CapitaLand Group and the manager of Norway's sovereign wealth fund was shortlisted as the preferred bidder. In early November, however, CapitaLand announced that it had ceased negotiations with BlackRock "for now". CapitaLand implied that it exited the negotiations because Asia Square did not fit in with its strategy, and its yields did not meet requirements.

The group has also stressed the importance of staying disciplined in pursuing opportunities.