Home News REITs

WeWork's cancelled IPO to have limited impact on CCT

Goola Warden
Goola Warden10/4/2019 07:00 AM GMT+08  • 3 min read
WeWork's cancelled IPO to have limited impact on CCT
Singapore (Oct 7): WeWork’s aborted IPO, announced amid questions over corporate governance, mounting losses and unrealistic valuations, has raised questions over whether the office space leasing company can meet its commitments for properties it plans
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Singapore (Oct 7): WeWork’s aborted IPO, announced amid questions over corporate governance, mounting losses and unrealistic valuations, has raised questions over whether the office space leasing company can meet its commitments for properties it plans to lease that are not operational yet. Among those in key global cities is 21 Collyer Quay in Singapore, better known by its former name, the HSBC Building.

In July, CapitaLand Commercial Trust’s manager announced an agreement with WeWork to lease the entire 21 Collyer Quay for seven years starting 2QFY2021. The building is on a 999-year leasehold site and has a net lettable area of around 200,000 sq ft. Its valuation is $462.2 million, which accounts for around 4.3% of CCT’s portfolio value of $10.7 billion.

Upon the expiry of HSBC’s lease in April next year, CCT will spend $45 million in asset enhancement initiatives on the building. According to the real estate investment trust, the return on investment is 9%. In response to queries from The Edge Singapore, a CCT spokeswoman reiterates that “there is no change” to its binding lease agreement with WeWork.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now