SINGAPORE (July 3): CapitaLand Commercial Trust (CCT) is selling Wilkie Edge to Lian Beng for $280 million or $1,812 psf based on the building’s net lettable area.

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 Nov 17 2008.

Wilkie Edge has a lease expiring on Feb 20 2105 with a total net lettable area of 154,528 sf.

The top three tenants are SF Consulting, Kaplan Learning Institute and Tower Research Capital (Singapore).

Lian Beng will take over all existing rights and obligations in relation to this existing lease.

CapitaLand Commercial Trust Management says the sale consideration is 39.3% above the Dec 31 2016 valuation of $201 million or $1,301 psf and 53.3% higher than its original purchase price of $182.7 million in 2008.

CCT is expected to recognise an estimated net gain of $76.0 million over the Dec 31 2016 valuation.

The sale is expected to be completed in September.

Lynette Leong, CEO of CapitaLand Commercial Trust Management, says, “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.”

Units of CCT closed 0.5 cent higher at $1.665.