SINGAPORE (June 29): The manager of CapitaLand Commercial Trust (CCT) announced it will be divesting Twenty Anson for a consideration of $516.0 million or $2,503 psf.
The 20-storey office building located in Tanjong Pagar will be sold to an unrelated third party and the transaction is expected to be completed in 3Q18.
As at Mar 31, Twenty Anson has a committed occupancy of 94.3%, with Toyota Motor Asia Pacific, BlackRock Advisors Singapore and BCD Travel Asia Pacific as its top three tenants. It accounted for about 3% of CCT’s net property income.
The sale consideration was arrived through a bidding process and is 20.0% higher than the trust’s purchase price of $430.0 million in 2012. The consideration is also 19.2% higher than the property’s valuation of $433.0 million in Dec 31, 2017.
Following the divestment, CCT’s portfolio will comprise 10 properties with a total net lettable area (NLA) of 4.7 million sq ft across Singapore and Frankfurt, Germany.
Kevin Chee, CEO of the manager says, “Assuming net divestment proceeds are used to repay existing debt, CCT’s pro-forma aggregate leverage would drop from 37.9% as at 31 March 2018 to 34.5%. We will continue to explore opportunities to enhance our portfolio as demonstrated by our ongoing development of CapitaSpring in Singapore and acquisition of Gallileo in Frankfurt, Germany.”
As at 3.20pm, units in CCT are trading 2 cents higher at $1.65.
