Singapore: CapitaLand divests Wilkie Edge for $202.7m

Wilkie Edge. Credit: CapitaLand

CapitaLand Commercial Trust Management Limited (CCTML), the manager of CapitaLand Commercial Trust (CCT), has offloaded Wilkie Edge for S$280 million ($202.7 million) to the Lian Beng Group.

The sale consideration amounts to S$1,812 per square foot (psf) based on the building’s net lettable area of 154,528 square feet. It is a leasehold property whose lease expires on 20 February 2105 and is in close proximity to several subway stations in the city-state.

The transaction saw Lian Beng purchase the property from a trustee of CCT, HSBC Institutional Trust Services (Singapore) Limited, with the sale expected to be completed in September 2017.

Located at the junction of Wilkie Road and Selegie Road, Wilkie Edge is a 12-storey integrated development comprising office and retail units as well as a serviced residence, Citadines Mount Sophia, which is leased to Ascott Residence Trust for 96 years from 17 November 2008.

The purchaser shall take over all existing rights and obligations in relation to this existing lease. As at 31 March 2017, Wilkie Edge contributed 3 per cent to CCT’s Q1 2017 net property income, with the top three tenants being SF Consulting Pte Ltd, Kaplan Learning Institute Pte Ltd and Tower Research Capital (Singapore) Pte Ltd.

The sale consideration is 39.3 per cent above the 31 December 2016 valuation of S$201.0 million or S$1,301 psf and 53.3 per cent higher than its original purchase price of S$182.7 million in 2008.

CCT is expected to recognise an estimated net gain of approximately S$76.0 million over the 31 December 2016 valuation. Based on Wilkie Edge’s net property income of S$9.5 million for the 12 months preceding 31 March 2017 and the sale consideration, this translates to a net property yield of 3.39 per cent per annum.

Lynette Leong, CEO of CCTML said, “The sale of Wilkie Edge is in line with the Trust’s portfolio reconstitution strategy to rejuvenate its portfolio and recycle capital to give us the financial flexibility to invest in more attractive growth opportunities. Assuming all the net proceeds from the sale is used to repay existing debt, CCT’s aggregate leverage as at 31 March 2017 would decrease from 38.1% to 35.7%.”

“Together with our recent sale of 50% of One George Street, the sale proceeds will give us comfortable headroom to invest in opportunities that will continue to generate sustainable returns for our unitholders.”

Also Read:

Singapore Realty: Ho Bee Land, First Sponsor Group hike exposure in Europe

Singapore: HNA Commercial REIT targets $561m fundraise via IPO

Singapore: CDL Hospitality Trust acquires Munich hotel for $112m

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.