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CapitaLand Commercial Trust kept at ‘buy’ with sale of One George Street

PC Lee
PC Lee5/2/2017 04:58 PM GMT+08  • 3 min read
CapitaLand Commercial Trust kept at ‘buy’ with sale of One George Street
SINGAPORE (May 2): DBS is maintaining its “buy” call on CapitaLand Commercial Trust with a target price of $1.69 after the latter announced this morning that it was divesting One George Street (OGS) to One George Street LLP (OGS LLP) a limited liabili
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SINGAPORE (May 2): DBS is maintaining its “buy” call on CapitaLand Commercial Trust with a target price of $1.69 after the latter announced this morning that it was divesting One George Street (OGS) to One George Street LLP (OGS LLP) a limited liability partnership but will own a 50% interest in the JV.

(See also: CapitaLand Commercial Trust to divest One George Street into 50%-held JV partnership for $84.6 mil)

The agreed valued of OGS is $1.18 billion or $2,650 psf which is 16.7% above OGS’s latest valuation of $1 billion ($2,271 psf) as at Dec 31 2016. Based on the net income of $38 million for the 12 months preceding March 31, 2017, this translates to an exit NPI yield of 3.2%.

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