Capitaland Commercial Trust (CCT) has announced the completion of the divestment of Twenty Anson.
The sale was originally announced on 29 June 2018, with CCT mentioning the sale consideration of S$516 million or S$2,503 per sqft based on the building’s net lettable area.
On the divestment, Mr Kevn Chee, CEO of the Manager, said “The divestment of Twenty Anson is in line with CCT’s proactive strategy to reconstitute the Trust’s portfolio and optimize returns for unitholders”.
Assuming net divestment proceeds are used to repay existing debt, CCT’s pro-forma aggregate leverage would drop from 37.9% as at 31 March 2018 to 34.5%.
Principal terms of the sale and purchase agreement
In the announcement by CCT, the principal terms of the SPA are
- No material damage relating to Twenty Anson
- No compulsory acquisition or notice of compulsory acquisition or intended compulsory acquisition relating to Twenty Anson; and
- the purchase not receiving a reply to legal requisitions from the relevant authorities which materially adversely affects Twenty Anson,
prior to completion of the sale
Pro forma effects of the sale
NAV before and after the sale is S$1.74 and S$1.76 respectively
DPU will be anticipated to remain stable at 8.66 Singapore cents.
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Post completion portfolio
Now that the transaction has been completed, CCT’s portfolio will comprise 10 properties with a total net lettable area of 4.7m sqft across key sub-markets of Singapore’s CBD, as well as the banking district in Frankfurt, Germany.
Property details of Twenty Anson
- Location: Twenty Anson Road, Singapore 079912
- Net lettable area: Approx 206,000 sqft
- Committed occupancy: 94.3% at 31 March 2018
- No of storeys: 20
- No of tenants: 29 (at 31 March 2018)
- No of car park lots: 55
- Land tenure: leasehold expiring 22 Nov 2106
- Gross revenue: S$4.6m (1Q2018)
- Net property income: S$3.5m (1Q2018) (76% NPI margin)