The manager of CapitaLand Integrated Commercial Trust Management (CICT) has entered into several agreements on April 18 pertaining to its properties, Tampines Mall, Raffles City Singapore and Asia Square Tower 2.
The agreements were entered with SP Sustainability & Engineering, SembWaste and Real Taste Pte Ltd.
On April 18, CICT entered into a new service agreement with SP Sustainability & Engineering, where the latter will provide district cooling services at Tampines Mall for 30 years, beginning in 2024 through to 2053.
Under the agreement, CICT will pay an estimated total of $64.4 million to SP as fees for the district cooling services. The fees are based on the chilled water tariff charged by SP, which comprises the cost of service connection facility, fixed contract capacity rate, flexible contract capacity rate and usage unit rate.
CICT has, on the same day, entered into a new service agreement via RCS Trust with SembWaste. Under the agreement, SembWaste will provide refuse management and recycling services at Raffles City Singapore for seven years. This includes an option to renew for a further term of three years. The agreement will commence May 1.
RCS Trust will have to pay an estimated total sum of $1.08 million to SembWaste as fees for the services.
See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM
SembWaste was appointed following an open tender process during which the pricing and quality of services offered by SembWaste was reviewed and evaluated against other service providers, says the REIT manager. It adds that the agreement was made on normal commercial terms and not prejudicial to the interests of CICT and its minority unitholders.
At the same time, a lease agreement has been made between CapitaLand Commercial Trust (CCT) and Real Tasty in respect of the premises at a unit on level 2 of Asia Square Tower 2 for three years, beginning May 23. Real Tasty will have to pay CCT an estimated total sum of $284,000 during the lease period. The rent was negotiated at arm’s length after considering the lease, size, condition and location of the premises.
According to CICT’s manager, an independent valuer was appointed to provide an independent opinion on the terms of the lease. The rent as at the date of commencement of the lease, is said to be at market level. The other key commercial terms of the lease are normal commercial terms and in accordance with market standards.
See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM
SP Sustainability & Engineering and SembWaste are subsidiaries of Temasek Holdings while Real Taste is an associate of Temasek.
Temasek is a controlling shareholder of CICT, with a total interest of 1.59 billion units in CICT, or 24.05% of its total units in issue through its subsidiaries and associated companies.
Under the listing rules, an interested person transaction (IPT) must be announced if the value of the IPT is equal to or exceeds 3% but is less than 5% of the latest audited consolidated net tangible asset (NTA) of the issuer and its subsidiaries.
As at April 18, the value of all IPTs entered into between CICT and Temasek is around $569.43 million and around $566.29 million under rules 905 and 906 of the listing manual.
Units in CICT closed 1 cent lower or 0.44% down at $2.25 on April 18.
