CapitaLand Integrated Commercial Trust is divesting One George Street and will book net proceeds of $344.8 million for its 50% stake.
The 23-storey Grade A office building at the Raffles Place area is being sold for $1.2815 billion to an entity known as SG OGS.
Knight Frank values the property at $1.175 billion as of Sept 30.
See: UOB KH optimistic on CICT, with reopening likely to resume
At the transacted price, that’s a unit price of $2,875 per square foot and was arrived at through a bidding process conducted by an appointed property consultant.
CICT’s share of the proceeds is around $640.7 million and based on the annualized year-to date September 2021 net property income and the consideration, the exit yield is approximately 3.17%.
See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM
One George Street has a total net lettable area of 445,735 square feet and its committed occupancy rate was 96.9% as at Sept 30 2021.
The property’s net property income for year-to-date September 2021 was $30.4 million on a 100% interest.
The transaction is expected to close next month.
See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM
CICT closed Nov 12 at $2.17, up 0.93%.
Photo: CICT
