I am pretty uncomfortable with the ever declining capitalization and discount rates employed by CCT and its valuers. from the table attached, one can see the CAP rate and discount rate used at present is lower than that of 2014. Assuming if rental remains constant, it means property values will just be boosted up.
No doubt Wilkie Edge was sold at such a high valuation to Lian Beng, but it is becoming a game where there must be "a greater fool" in the market to buy.
<Not very excited at how CCT and valuers are shifting its valuation parameters over the years to achieve a high asset base>
21-09-2017, 06:37 PM (This post was last modified: 21-09-2017, 06:43 PM by CY09.)
CCT is acquiring Asia Tower 2.
The acquisition will be funded by rights issue, its cash reserves and more bank borrowings.
The property is sold to CCT at a net property yield at about 3.6%. Post rights, CCT will be more leveraged and will have a lower yield (DPU) post rights.
I don't find this acquisition accretive to shareholders of CCT.
CapitaSpring secures J.P. Morgan as anchor office tenant
Joint venture partners CapitaLand Limited (CapitaLand), CapitaLand Commercial Trust (CCT) and Mitsubishi Estate Co., Ltd (MEC) unveiled today the name of their upcoming 51-storey skyscraper at 88 Market Street – CapitaSpring.
CapitaLand Commercial Trust owns 45.0% of CapitaSpring, the other joint venture partners are CapitaLand Limited (45.0%) and Mitsubishi Estate Co., Ltd (10.0%).
CapitaSpring which broke ground for construction in February 2018, will be one of the tallest and greenest buildings in Raffles Place, with integrated commercial and community spaces and a City Room at the ground floor. Community events such as fitness sessions and lunchtime performances can be held at the City Room, which will blend into a 12,500-sq-ft public park. Occupants can also look forward to a café, treetop cocoons, sky hammocks, meeting and activity spaces connected by a spiral stairway at the Green Oasis. CapitaSpring will also be home to Singapore’s highest urban farm and a fine-dining restaurant on the rooftop at around 280-metres-high.
J.P. Morgan, the global banking and financial services provider, will take up close to a quarter of the 635,000 square feet (sq ft) of the net lettable area at CapitaSpring. This translates to approximately 155,000 sq ft of premium office space from levels 24 to 30.
Private Placement of 130 Million New Units in Capitaland Commercial Trust & Proposed Acquisition of 94.9% interest in Gallileo property in Germany
CapitaLand Commercial Trust Management Limited, in its capacity as manager of CapitaLand Commercial Trust ("CCT") announced the proposed private placement of 130,000,000 new units in CCT to eligible institutional, accredited and other investors at an issue price of between S$1.631 and S$1.676 per New Unit (both figures inclusive) to raise gross proceeds of no less than S$212.0 million.
Subject to relevant laws and regulations, the Manager intends to use the gross proceeds of approximately S$212.0 million (assuming the issue price is based on the minimum of the Issue Price Range of S$1.631 per New Unit) from the Private Placement in the following manner:
(i) approximately S$208.7 million (which is equivalent to approximately 98.4% of the gross proceeds of the Private Placement) to partially finance the acquisition of 94.9% interest in Gallileo Property S.a.r.l which holds a 100% interest in the property known as Gallileo, which is located at Gallusanlage 7 / Neckarstrasse 5, 60329 Frankfurt Am Main Germany; and
(ii) approximately S$3.3 million (which is equivalent to approximately 1.6% of the gross proceeds of the Private Placement) to pay the estimated transaction-related expenses, including professional fees and expenses, incurred or to be incurred by CCT in connection with the Private Placement, with the balance of the gross proceeds of the Private Placement, if any, to be used for general corporate and/or working capital purposes.
CapitaLand Commercial Trust Divests Twenty Anson for S$516.0 million
CapitaLand Commercial Trust announced today that its trustee, HSBC Institutional Trust Services (Singapore) Limited has today entered into an agreement for the sale of Twenty Anson, a 20-storey office building in Tanjong Pagar, a sub-market of Singapore’s Central Business District (CBD), to an unrelated third party for a sale consideration of S$516.0 million or S$2,503 per square foot based on the building’s net lettable area. The transaction is expected to be completed in 3Q 2018.
The sale consideration was arrived at through a bidding process conducted by an appointed property consultant, and is 19.2% above the 31 December 2017 valuation of S$433.0 million and 20.0% higher than CCT’s purchase price of S$430.0 million in 2012. The sale consideration translates to a net property yield of 2.7% based on Twenty Anson’s net property income of S$13.8 million for the 12 months preceding 31 March 2018.
CapitaLand Commercial Trust ("CCT") announced that it has signed a one-year lease extension for the whole of 21 Collyer Quay with The Hongkong and Shanghai Banking Corporation Limited ("HSBC") today. The total rent payable by HSBC for the extended term commencing 30 April 2019 will be S$27.7 million.
21 Collyer Quay is a 200,000 square feet office building with a leasehold estate expiring on 18 December 2849 and a valuation of S$461.0 million as at 30 June 2018. HSBC is leasing the entire building currently and is one of CCT’s top ten tenants, contributing approximately 4% to CCT’s monthly gross rental income as at 30 June 2018.
In line with CCT’s proactive asset management strategy, the Manager is evaluating options for the property after April 2020 which include refurbishment and re-letting, redevelopment and divestment. CCT will share more information about its plans for 21 Collyer Quay when they are finalised.
WeWork to lease 21-storey Singapore office tower after HSBC moves out
Aradhana Aravindan
JULY 17, 2019 / 8:24 AM
SINGAPORE (Reuters) - WeWork Cos will lease a 21-storey building in Singapore’s prime financial district that is currently leased to HSBC, marking an expansion by the U.S. co-working space provider in Asia.
WeWork, backed by Japan’s SoftBank Group (9984.T), will lease the building from CapitaLand Commercial Trust (CCT) (CACT.SI), the Singaporean office landlord said in a statement.
The tower, 21 Collyer Quay, will be WeWork’s biggest property in the Southeast Asian nation and has a net lettable area of about 200,000 square feet.
CCT said its lease deal with Hongkong and Shanghai Banking Corp Ltd, a unit of HSBC Holdings Plc (HSBA.L), will end in April 2020 but did not give financial details of the new lease.
Co-working spaces have become popular among startups because these give them the flexibility of short-term leases in well-decorated spaces and keep overheads low. Increasingly, larger companies are also using co-working firms to manage their offices.
In Singapore, the flexible workspace footprint has more than tripled since 2015 and now accounts for some 4% of the office space in the central business district, according to real estate consultancy Colliers.
WeWork may get signage rights for the building, which would boost its branding and visibility in the central business district, said Christine Li, head of Singapore and Southeast Asia research at property services firm Cushman and Wakefield.
“It’s a very good catch for WeWork,” said Li, because typically only a few floors are available in the business district due to low vacancy.
The lease will start in the second quarter of 2020 for seven years, CCT said. WeWork will occupy 20 floors of the building, the U.S. firm said in a separate statement, but did not provide details about the one other floor.
HSBC Singapore said last year that it would relocate its head office to Marina Bay Financial Centre, within the central business district.
Rents for grade A buildings in Singapore’s central business district surged 12.7% last year, Cushman and Wakefield’s Li said.
SINGAPORE (July 17): CapitaLand Commercial Trust (CCT) is acquiring a 94.9% stake in Main Airport Center (MAC) in Frankfurt, Germany, for €251.5 million ($387.1 million). The acquisition marks CCT’s second asset acquisition in Frankfurt and increase CCT’s overseas exposure from 5% to 8% of its portfolio property value. Located close to Frankfurt Airport and a 20-minute drive to Frankfurt’s Central Business District, MAC is a freehold multi-tenanted office building with a total net lettable area (NLA) of 60,200 sqm.
(17-07-2019, 06:10 PM)cyclone Wrote: WeWork to lease 21-storey Singapore office tower after HSBC moves out
Aradhana Aravindan
JULY 17, 2019 / 8:24 AM
SINGAPORE (Reuters) - WeWork Cos will lease a 21-storey building in Singapore’s prime financial district that is currently leased to HSBC, marking an expansion by the U.S. co-working space provider in Asia.
WeWork, backed by Japan’s SoftBank Group (9984.T), will lease the building from CapitaLand Commercial Trust (CCT) (CACT.SI), the Singaporean office landlord said in a statement.
The tower, 21 Collyer Quay, will be WeWork’s biggest property in the Southeast Asian nation and has a net lettable area of about 200,000 square feet.
CCT said its lease deal with Hongkong and Shanghai Banking Corp Ltd, a unit of HSBC Holdings Plc (HSBA.L), will end in April 2020 but did not give financial details of the new lease.
Co-working spaces have become popular among startups because these give them the flexibility of short-term leases in well-decorated spaces and keep overheads low. Increasingly, larger companies are also using co-working firms to manage their offices.
In Singapore, the flexible workspace footprint has more than tripled since 2015 and now accounts for some 4% of the office space in the central business district, according to real estate consultancy Colliers.
WeWork may get signage rights for the building, which would boost its branding and visibility in the central business district, said Christine Li, head of Singapore and Southeast Asia research at property services firm Cushman and Wakefield.
“It’s a very good catch for WeWork,” said Li, because typically only a few floors are available in the business district due to low vacancy.
The lease will start in the second quarter of 2020 for seven years, CCT said. WeWork will occupy 20 floors of the building, the U.S. firm said in a separate statement, but did not provide details about the one other floor.
HSBC Singapore said last year that it would relocate its head office to Marina Bay Financial Centre, within the central business district.
Rents for grade A buildings in Singapore’s central business district surged 12.7% last year, Cushman and Wakefield’s Li said.
From CICT's 3Q23 update, WeWork Spore is CICT's 2nd largest tenant in terms of gross rental (~2.4%). While US parent is not competitive, but is there a case for someone to take over WeWork Spore when parent finally declares bankrupted?
WeWork insists it’s business as usual in Singapore amid talk of US parent seeking bankruptcy protection
All its 14 locations here still operational, but landlords monitoring situation closely
Homepage
PR Newswire
