BlackRock exits Singapore Westin for S$468 million

BlackRock Real Estate, the real estate investment arm that absorbed private equity real estate firm MGPA last year, has made its largest exit out of MGPA Asia Fund III with the sale of the Singapore Westin Hotel, the investor has confirmed.

The firm declined to comment on details, but media reports have estimated the purchase price to be around S$468 million (€271 million; $368 million). The buyer of the 305-room hotel, which is located within the Asia Square Tower 2 commercial development in Marina Bay, has also been named in press as Japanese developer Daisho Group.

Singapore’s Business Times reported that BlackRock’s original asking price for the hotel was S$2 billion per room, or S$610 million overall. The final price reported would reflect slightly more than S$1.5 million per room.

It is understood that the investment period on the $3.9 billion Fund III concluded last year, after an 18-month extension granted last year. The firm is also currently exiting investments from its $921 million Asia Fund II. A fourth fund is understood to be in the works, but not launched yet.

BlackRock completed its acquisition of the MGPA platform in October. The acquisition price of the merger was not disclosed, but at the time MGPA has $12 billion assets under management.  The combined platform has $23.5 billion assets under management across Asia, Europe and North America. The merger has allowed BlackRock to expand its focus from core real estate investments via REITs and open-ended funds, predominantly in the US, to value-added and opportunistic capabilities across Asia and Europe as well.