CapitaLand Commercial Trust to buy remaining 60% stake in CapitaGreen for S$393m

CapitaLand Commercial Trust (CCT), Singapore’s largest office real estate investment trust, will acquire the remaining 60 per cent stake it does not own in the CapitaGreen office tower for S$393 million.

CCT will buy a 50 per cent share from CapitaLand group and another 10 per cent share from Mitsubishi Estate Asia, the company said in a filing to the Singapore Exchange on Monday (May 23).

The purchase will be funded through borrowings from committed bank facilities, CCT said.

CapitaLand said in a separate exchange filing that the acquisition price is based on CapitaGreen’s agreed market value of S$1.6 billion (S$2,276 per square foot), which is the average of two independent valuations.

CCT will exercise a call option to acquire the stakes. This call option is part of a joint venture agreement signed in 2011 and is conditional on market valuation being equal to or above the hurdle price of S$1.59 billion, CapitaLand said.

The developer added that it will make a profit of about S$196 million from the sale of its stake.

Completed in December 2014, CapitaGreen is a Grade A office tower developed on the site of the former Market Street Car Park. The building has a net lettable area of about 703,000sqft, and has an occupancy of 92.8 per cent as of Mar 31.

Source : Channel NewsAsia – 23 May 2016