BlackRock close to buying 299-unit Citadines Raffles Place for S$300 million
The asset management company is said to have completed due diligence for the hospitality asset, which is within the CapitaSpring building in Market Street
A SALE of Citadines Raffles Place serviced apartments seems to be in the offing, with BlackRock said to have completed due diligence for a potential acquisition. The Business Times understands that the pricing is about S$300 million or slightly over S$1 million per unit.
The 299-unit Citadines Raffles Place is within the CapitaSpring building, which is on a site in Market Street with a 99-year leasehold tenure that began on Feb 1, 1982; this leaves about 56.5 years on the lease.
CapitaSpring is owned by a 45:45:10 joint venture involving CapitaLand Integrated Commercial Trust (CICT), CapitaLand Development and Mitsubishi Estate Co.
The project, developed on the former Golden Shoe Car Park and Market Street Food Centre site, was completed in 2021.
The serviced apartments are on levels nine to 16 of the 51-storey building which also has a food centre, offices and pockets of retail space. The serviced residences at Citadines Raffles Place comprise studios, one-bedders, two-bedders and lofts. The units range from about 215 square feet (sq ft) to 646 sq ft.
Market watchers expect BlackRock to reposition the asset to enhance its value.
Some observers are also wondering if the asset management giant will have a partner for this acquisition, similar to its strategy for the S$148 million purchase of the 154-unit Citadines Mount Sophia Singapore earlier this year. For that deal, BlackRock teamed up with Weave Living. Citadines Mount Sophia, which was sold by CapitaLand Ascott Trust, had a balance leasehold estate of about 81 years at the time of the deal. Hong-Kong-heaquartered Weave Living said that the property will undergo a year-long renovation before reopening under its serviced accommodation brand, Weave Suites.
Other Singapore hospitality transactions this year include Capri by Fraser, Changi City, which fetched about S$171.8 million. It was bought by a consortium comprising TPG Angelo Gordon, Atelier Capital Partners and Hong Kong-listed Far East Consortium International.
Tuan Sing acquired Fraser Residence River Promenade by the Singapore River for S$140.9 million.
