CapitaLand sells Adelphi units in a deal worth S$218m

Southeast Asia’s largest property developer CapitaLand said on Friday it had sold units at a property in downtown Singapore for a total of S$218 million.

Its indirect subsidiary Adelphi Property Pte. Ltd has sold 86 office units and 77 retail units to Guthrie Pte. Ltd. and its joint venture partner Sun Venture Property Pte. Ltd.

The property is a 999-year leasehold, 10-storey mixed-use building comprising a 5-storey retail podium and a 6-storey office block with 4 levels of basement parking.

“The Adelphi units have potential for capital appreciation whilst offering stable rental income. This investment will further increase the Company’s profile in the real estate sector,” said Guthrie GTS Ltd.

The sale is expected to be completed by 28 January 2011.

Capitaland said in a statement that it expects to recognise a profit of about S$15.7 million after tax from the sale of the 163 units.

Mrs Wong Jen Lai, Senior Vice President, Investment and Asset Management, CapitaLand Commercial Limited, said: “The sale is in line with our active portfolio management strategy to unlock the value of non-core assets and recycle capital.

The office sector remains a core business for CapitaLand and we are confident of the outlook of the office market in Singapore underpinned by the economy’s robust growth.

We will actively seek good quality assets and new opportunities in Singapore that will enhance our core commercial portfolio.”

Source : Channel NewsAsia – 3 Dec 2010

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