BlackRock Inc. and the hotel unit of Malaysian developer YTL Corp. are set to purchase a group of serviced apartments in a prime office building in Singapore’s Central Business District, according to people familiar with the matter.

The world’s largest asset manager is seeking to buy the Citadines Raffles Place for just under S$290 million ($223 million), the people said, asking not to be identified because the discussions are private. YTL Hotels, which owns and manages hotels for Malaysian tycoon Francis Yeoh’s property group, will hold a minority stake in the 299-room development.

The facility is located in CapitaSpring, an office building that was completed in 2021. The buyers are seeking to repurpose the property to be more like a hotel and allow for single-night stays, the people said. Guests at serviced apartments in Singapore are currently required to stay for at least seven days.

Read also: Weave Living and Blackrock form JV to acquire Citadines Mount Sophia for $148 mil

CapitaSpring is owned by a joint venture led by CapitaLand Group Pte’s private development arm and CapitaLand Integrated Commercial Trust (CICT). Japan’s Mitsubishi Estate Co. holds a 10% stake.

BlackRock and CapitaLand Development didn’t immediately respond to emailed requests for comment. YTL Hotels declined to comment. A spokesperson for CICT said the trust regularly reviews and evaluates asset plans to maximize value for unitholders and “there is no certainty of any deals materializing.”

The transaction will mark another purchase for BlackRock in an asset class it has favored in Singapore. One of its funds bought another serviced apartment complex to the north of the CBD, Citadines Mount Sophia, earlier this year as part of a joint venture with Hong Kong-based accommodation provider Weave Living.

BlackRock’s head of Asia-Pacific real estate Hamish MacDonald said in an interview last month that it’s focusing on acquiring “high-amenity serviced apartments” in Singapore, at locations that are attractive to tourists, rather than smaller units more associated with co-living concepts.

YTL operates hotels in places including Japan’s Niseko, Australia and the Ritz-Carlton in Kuala Lumpur. The developer, founded by the late billionaire Yeoh Tiong Lay, also has interests in sectors including utilities and building materials.

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