CCT paying $430m for office block in Tanjong Pagar

Straits Times: Thu, Feb 23
   CAPITACOMMERCIAL Trust (CCT) has agreed to buy a recently completed office tower for $430 million, which works out to $2,121 psf of net lettable area.  Located in the Tanjong Pagar area, Twenty Anson is a 202,696 sq ft grade A office building comp…

CAPITACOMMERCIAL Trust (CCT) has agreed to buy a recently completed office tower for $430 million, which works out to $2,121 psf of net lettable area.

Located in the Tanjong Pagar area, Twenty Anson is a 202,696 sq ft grade A office building completed in 2009.

The 20-storey building is fully occupied and houses tenants such as Blackrock and Toyota.

It was jointly developed by LaSalle Asia Opportunity Fund III and its partner Lum Chang, and has been awarded the Green Mark Platinum certification, one of the highest green building qualifications.

The average rent at the property stands at $6.18 psf per month, lower than the current market rate of $8.44 psf per month. CapitaLand said the building has significant rent upside potential when the leases are renewed.

Mr Richard E. Hale, chairman of CCT’s manager CapitaCommercial Trust Management (CCTM), said the property would be a strategic fit to the Trust’s current portfolio of nine quality properties and is expected to generate incremental distribution per unit of 0.36 cent on a pro forma basis.

He added that when completed, the acquisition will increase the Trust’s total asset size from $6.7 billion to $6.9 billion.

CCTM also said it will ensure a stabilised yield of 4 per cent per annum by setting aside $17.1 million that will be drawn upon over the first 31/2 years.

Twenty Anson is a five-minute walk to Capital Tower, one of CCT’s assets, allowing for the sharing of resources and economies of scale, which will lead to improved operating efficiency, said Ms Lynette Leong, chief executive of CCTM.

The LaSalle fund bought several properties in Asia last year, including the 440 million yuan (S$88 million) acquisition of a 49 per cent interest in a plot of land in Chengdu, China, in September.

Its most recent deal in Singapore was the high-profile sale of Crowne Plaza Changi Airport to Overseas Union Enterprise in June last year.

26 Newton

Source: The Straits Times © Singapore Press Holdings Ltd

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