CapitaLand fourth quarter profits plunge 40%
A man passes a Capitaland logo at a mall in Singapore February 10, 2016.

CapitaLand Commercial Trust on Thursday said it would buy Asia Square Tower 2 in Singapore's Marina Bay from BlackRock for about S$2.1 billion.

CapitaLand Commercial Trust, a unit of property developer CapitaLand, will fund the acquisition through a mix of rights issue, bank borrowings and disposals, it said in a regulatory filing.

Asia Square Tower 2, a 46-storey office building, is one of the newest buildings in the Marina Bay area and is easily accessible via an extensive public transport network.

The net property income (NPI) yield is expected to be 3.6 percent per annum based on a committed occupancy rate of 88.7 percent as at June 30, 2017.

"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," Chief Executive Officer Lynette Leong said.

"Post-acquisition, CCT's portfolio value will increase from S$8.0 billion to S$10.1 billion. The contribution from Grade A buildings will significantly increase from S$4.9 billion to S$7.0 billion and augment the quality of our portfolio for long term growth."

CapitaLand Commercial Trust plans to raise about S$700.0 million via rights issue and S$1,120.0 million via external bank borrowings.

The company plans to divestment its stakes in One George Street, Golden Shoe Car Park and Wilkie Edge to raise proceeds of about S$340.1 million, it said in a statement.

Shares in CapitaLand Commercial Trust were halted from trading. They closed down 0.9 percent at S$1.695 on the Singapore Exchange on Wednesday.