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CICT to divest One George Street, to book net proceeds of $344.8 mil

The Edge Singapore
The Edge Singapore 11/12/2021 10:30 PM GMT+08  • 1 min read
CICT to divest One George Street, to book net proceeds of $344.8 mil
The Grade A office is sold at $2,875 per square foot
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CapitaLand Integrated Commercial Trust is divesting One George Street and will book net proceeds of $344.8 million for its 50% stake.

The 23-storey Grade A office building at the Raffles Place area is being sold for $1.2815 billion to an entity known as SG OGS.

Knight Frank values the property at $1.175 billion as of Sept 30.

See: UOB KH optimistic on CICT, with reopening likely to resume

At the transacted price, that’s a unit price of $2,875 per square foot and was arrived at through a bidding process conducted by an appointed property consultant.

CICT’s share of the proceeds is around $640.7 million and based on the annualized year-to date September 2021 net property income and the consideration, the exit yield is approximately 3.17%.

See also: Cromwell European REIT's manager responds to news of Milan office divestment

One George Street has a total net lettable area of 445,735 square feet and its committed occupancy rate was 96.9% as at Sept 30 2021.

The property’s net property income for year-to-date September 2021 was $30.4 million on a 100% interest.

The transaction is expected to close next month.

See also: CICT prices $400 mil worth of seven-year green bonds

CICT closed Nov 12 at $2.17, up 0.93%.

Photo: CICT

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