CapitaLand Commercial Trust completes acquisition of Asia Square Tower 2

CAPITALAND Commercial Trust (CCT) completed the S$2.09 billion acquisition of Asia Square Tower 2 (AST2) from BlackRock Asia Property Fund III LP on Wednesday.

In an announcement, CCT's manager CapitaLand Commercial Trust Management said that HSBC Institutional Trust Services (Singapore) Limited, in its capacity as CCT's trustee, has completed the acquisition of AST2 which is Singapore's second largest office tower sale in history.

The manager will receive an acquisition fee of some S$20.9 million (one per cent of the agreed property value), which will be paid in cash.

Separately, CCT announced that 98.6 per cent of the gross proceeds raised from its S$700 million rights issue was used to part finance the acquisition while the remaining was used to pay the banks' underwriting commission and estimated professional and other fees and expenses expected to be incurred in connection with the rights issue.