Blackrock Tycoon Backed Ytl Set Buy Singapore Serviced Apartments
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BlackRock Inc. and YTL Corp.’s hotel unit are teaming up to buy a group of serviced apartments located in a highly sought-after office building in the Central Business District of Singapore. Sources familiar with the matter have revealed that the world’s largest asset manager is planning to acquire Citadines Raffles Place for approximately S$290 million ($223 million). YTL Hotels, which is responsible for managing hotels for Malaysian tycoon Francis Yeoh’s property group, will hold a small stake in the 299-room property.
The serviced apartments are located in the newly completed CapitaSpring, an office building owned by a joint venture led by CapitaLand Group Pte’s private development arm and CapitaLand Integrated Commercial Trust (CICT). Mitsubishi Estate Co. also holds a 10% stake in the building.
According to sources, the buyers plan to transform the property into a hotel and allow for single-night stays, a departure from the current minimum stay requirement of seven days for serviced apartments in Singapore. A spokesperson for CICT stated that the trust regularly reviews and evaluates asset plans to maximize value for unitholders and there is no certainty of any deals materializing.
This purchase marks another acquisition in Singapore’s real estate market for BlackRock, which has been favoring the serviced apartment asset class. Earlier this year, one of its funds purchased another serviced apartment complex, Citadines Mount Sophia, together with Hong Kong-based accommodation provider Weave Living.
In an interview last month, BlackRock’s head of Asia-Pacific real estate Hamish MacDonald stated that the company is focusing on acquiring high-amenity serviced apartments in prime locations, rather than smaller units associated with co-living concepts. YTL manages hotels in various locations, including Japan’s Niseko, Australia, and Kuala Lumpur’s Ritz-Carlton. The developer, founded by the late billionaire Yeoh Tiong Lay, also has interests in utilities, building materials, and other sectors.