SINGAPORE—BlackRock Asia Property Fund III is exiting its ownership of the Asia Square office complex here with the sale of Asia Square Tower 2. The buyer was locally based CapitaLand Commercial Trust, which is paying S$2.15 billion, or approximately US$1.59 billion, for the 778,719-square-foot tower.

The deal represents Asia's largest commercial real estate transaction year to date. BlackRock's 2016 sale of the larger Asia Square Tower 1 in Singapore to the Qatar Investment Authority, valued at approximately S$3.4 billion (US$2.45 billion), was the region's largest-ever single-tower deal.

“We seized the opportunity to acquire a premium grade A property at an attractive price and entry yield,” says Lynette Leong, the REIT's CEO. “Market statistics have shown that Singapore's office market rents have reached a trough; hence, the acquisition will position CCT to benefit from the expected market uptick in grade A office rents. Given our track record of successful leasing strategies, we will be able to capture further rental income upside from increasing the property's 88.7% occupancy in a rising market.”