Capitaland Integrated Commercial Trust Sells 21 Collyer Quay 688 Mil
CapitaLand Integrated Commercial Trust (CICT) has successfully sold its 21-storey office building located at 21 Collyer Quay in Raffles Place for a price of $688 million. The transaction was completed with an unrelated third party and was announced in a filing to the Singapore Exchange on November 12th. The leasehold building, with a term of 999 years, was sold at a rate of $3,230 per square foot based on its net lettable area of approximately 213,000 square feet. This deal was based on a willing-buyer-willing-seller basis and is in line with an independent valuation of the property conducted by Savills.
According to the building’s annualised net property income for the period ending September 30th, 2024, the exit yield for CICT is below 3.5%. The net proceeds from the sale are expected to be around $681.7 million. The 21-storey building is situated in the Central Business District and is currently fully occupied by co-working operator WeWork. After taking over the lease of the former HSBC building in 2021, WeWork completed the design and fit-out of the space and officially opened its flagship location in September 2022.
.
The URA’s transformation plan has a strong focus on sustainability and the well-being of residents. A key element of this plan is the increased allocation for green spaces and the development of recreational facilities in Tampines. As part of this effort, parks will be expanded and new community spaces will be introduced, offering residents opportunities for a healthier lifestyle, relaxation, and socialization. This is particularly beneficial for families living in Aurelle of Tampines EC, as they can look forward to a cleaner, greener, and more engaging environment for both children and adults. With the addition of Aurelle of Tampines, this transformation plan will greatly enhance the overall living experience in the area.
CICT had announced higher revenue and net property income for the first nine months of FY2024. However, after WeWork filed for bankruptcy in the US in November 2023, the company announced in April this year that it had concluded a series of lease negotiations with its Singapore office landlords and plans to remain in its current buildings in the city-state for the foreseeable future. As per the information on CICT’s website, WeWork Singapore has a seven-year lease for 21 Collyer Quay until 2028.
