CapitaLand confirms talks with Asia Square Tower 1 vendor

CAPITALAND issued a statement on Wednesday saying it is, with other parties, in negotiations with the vendor of Asia Square Tower 1 for a potential transaction.

"As negotiations with the vendor of Asia Square Tower 1 and the other parties on the terms of the potential transaction aritse still on-going, there is no certainty or assurance that any transaction for Asia Square Tower 1 will materialise or that any definitive or binding agreement will result from such negotiations," said the real estate company.

If the transaction proceeds, it anticipates drawing upon internal sources of funds and available credit lines to finance it. As at June 30, CapitaLand group has approximately S$3.5 billion in cash and cash equivalents and approximately S$3.1 billion in available undrawn facilities.

Bloomberg had earlier reported that a consortium of Norway's sovereign wealth fund and CapitaLand has been chosen as the preferred bidder for Asia Square Tower 1.

It added that the bidding group will start exclusive talks with BlackRock on the purchase and could reach an agreement in the next month, according to people with knowledge of the matter.