Tag Archives: Capitaland

CapitaLand pilots innovation at HQ to test-bed ‘office of the future’

CapitaLand has partnered with Singapore’s coworking space pioneer Collective Works to transform the 12th storey of Capital Tower – its headquarters – into a premium coworking space, as part of its pilot initiatives to test-bed alternative workspaces.

In what is a first for a Grade A office building and a landmark deal in the coworking sector, the joint initiative aims to shape the future of office buildings in Singapore and change the way office spaces are used.

“It is incumbent on CapitaLand to constantly assess opportunities that will allow us to stay ahead of the curve and seize first-mover advantages,” said CapitaLand president and group chief executive Lim Ming Yan in a statement.

Collective Works – Singapore’s first CBD-based coworking space – will manage the coworking space on behalf of the partnership.

The coworking concept, which began in the United States, has spread quickly across other gateway cities such as New York, London, Berlin and Paris, followed by South-east Asian countries such as Indonesia, Philippines, Malaysia, Thailand and Singapore. In Singapore, coworking is at a fairly nascent stage with a variety of business models, said CapitaLand.

The 50:50 joint venture, which will support up to 250 high performance businesses over 22,000 sq ft, has seen strong pre-registration, according to a statement issued by Collective Works.

CapitaLand ends discussions to buy Asia Square Tower 1

CapitaLand, South-east Asia’s biggest developer, says it has withdrawn from negotiations to buy Asia Square Tower 1.

The company will continue to explore opportunities that allow it to generate required returns, it said in a statement today (Nov 4). CapitaLand didn’t give a reason for its decision.

A consortium of Norway’s sovereign wealth fund and CapitaLand was chosen as the preferred bidder for the tower being sold by BlackRock Inc, in what may become the biggest office deal in Singapore, people with knowledge of the matter said last month.

The 43-storey tower, located in the new financial district at Marina Bay, could be valued at more than S$3.5 billion, the people said last month. BlackRock, the world’s largest asset manager, said earlier this year that it had received expressions of interest for Asia Square Tower 1 and could get more than S$4 billion for the building, whose tenants include Citigroup.

CapitaLand’s third-quarter profit jumped 48 per cent to S$192.7 million as revenue rose 17 per cent to S$1.08 billion, the company said today. Residential sales in China more than doubled in the quarter from a year earlier. The developer said property cooling measures in Singapore will continue to weigh on its home market.

Singapore home prices have dropped for eight straight quarters, matching the longest losing streak in 13 years, as tighter mortgage lending sapped demand in Asia’s second-most expensive luxury housing market. The Government began introducing residential property curbs in 2009 as low interest rates and demand from foreign buyers raised concerns that the market was overheating.

Source : Today – 4 Nov 2015

CapitaLand confirms talks to buy Asia Square Tower 1

Southeast Asia’s biggest property developer, CapitaLand, on Wednesday (14 Oct) confirmed news reports that it was involved in talks to buy the Asia Square Tower 1 office building.

Its statement to the stock exchange came a day after Bloomberg News said a consortium of Norway’s sovereign wealth fund and CapitaLand has been chosen as the preferred bidder for the 43-storey office building in Singapore’s central business district. Bloomberg said the deal could value Asia Square Tower 1 at more than S$3.5 billion.

CapitaLand said that as discussions are still ongoing, there is no certainty that a transaction will materialise.

Should the deal proceed, CapitaLand said it anticipates drawing upon internal sources of funds and available credit lines. As of Jun 30, 2015, CapitaLand had about S$3.5 billion in cash and cash equivalents and approximately S$3.1 billion in available undrawn credit facilities.

Asia Square Tower 1, which is owned by asset manager BlackRock, counts Citigroup and Swiss private bank Julius Baer among its main tenants.

Source : Channel NewsAsia – 14 Oct 2015

CapitaLand Mall Trust to buy Bedok Mall for S$780m

CapitaLand Mall Trust (CMT), Singapore’s largest shopping mall trust, will buy Bedok Mall from sponsor CapitaLand in a deal that values the mall at S$780 million.

The 222,500 square foot Bedok Mall, which opened in December 2013, is part of an integrated retail-residential-transport development at Bedok Town Centre that includes the 583-unit condominium Bedok Residences developed by CapitaLand.

The mall’s Basement 2 is directly linked to the Bedok MRT station, while the new air-conditioned Bedok bus interchange is integrated with the mall on Level 2. Bedok Mall’s key tenants include Fairprice Finest, UNIQLO and Best Denki.

“The proposed acquisition of Bedok Mall complements CMT’s current portfolio of mainly suburban malls catering to the necessity shopping segment,” Mr Wilson Tan, CEO of CapitaLand Mall Trust Management, said in a statement.

“It will increase CMT’s asset size from S$10.2 billion as at 31 March 2015 to about S$11 billion,” he added.

CMT’s properties include Tampines Mall, Junction 8, Funan DigitaLife Mall, IMM Building, Plaza Singapura, Bugis Junction, Sembawang Shopping Centre, JCube, Clarke Quay and Raffles City Singapore, in which it has a 40 per cent interest.

CapitaLand Mall Trust Management is an indirect wholly-owned subsidiary of CapitaLand.

Source : Channel NewsAsia – 14 Jul 2015

CapitaLand, CapitaMalls Asia, CapitaMall Trust sign option to sell Westgate Tower

CapitaLand, CapitaMalls Asia and CapitaMall Trust have signed an option to sell Westgate Tower for S$579.4 million.

In a filing with the Singapore Exchange, CapitaLand said the option was granted to a consortium comprising Sun Venture Homes and Low Keng Huat (Singapore), which has up to January 24 to exercise it.

Located at Jurong Gateway, Westgate Tower is the office component of the Westgate integrated development which also includes a shopping mall.

The 20-storey prime office tower has a net saleable area of 304,963 square feet, and is targeted to be completed in late 2014.

Source : Channel NewsAsia – 3 Jan 2014

CapitaLand Group to relocate to Westgate Tower from 2015

CapitaLand said Tuesday that the group will relocate to Westgate Tower in Jurong progressively from early 2015.

The group will occupy about 160,000 square feet across 11 floors of the new 20-storey prime office tower. It will also maintain a city office at Capital Tower as a flexible workspace to liaise with clients or business partners, it said.

The group, which includes CapitaMalls Asia, CapitaMall Trust, CapitaCommercial Trust, and Ascott Residence Trust, currently operates from different buildings in Singapore.

Mr Liew Mun Leong, President and CEO of CapitaLand Group, said: “The relocation will be a milestone for CapitaLand Group. For the first time, all business units in Singapore and the corporate office will operate from a single location. We want to create a conducive environment that will help to further improve productivity across the Group and achieve work-life integration.”

He added: “We are pleased that Westgate, sited within Jurong Gateway – the biggest commercial hub outside the Central Business District – will provide the ideal location for the Group to be housed under one roof. We look forward to playing a significant role in transforming the Jurong Lake District into a key regional business hub.”

Westgate, jointly developed by CapitaMalls Asia, CapitaMall Trust Management and CapitaLand, is to comprise a shopping mall and office tower. The 416,000-sq-ft lifestyle and family mall is expected to be opened by end-2013, while the 320,000-sq-ft office tower is slated for completion in end-2014.

Source : Today – 14 Aug 2012

Mitsubishi Estate Asia, CapitaLand, CCT to redevelop Market St Car Park

There is a possibility of a glut of new office space in the near future, and this will put pressure on rental reversion. However, this has not stopped Japan’s Mitsubishi Estate Asia (MEA) from acquiring a 10 per cent stake in the redevelopment of Market Street Car Park.

Together with CapitaLand and CapitaCommercial Trust (CCT), the Japanese real estate company will transform the car park into a Grade A office building by 2014.

In April, CCT announced its intention to redevelop Market Street Car Park with CapitaLand holding a 50 per cent stake in the joint venture (JV).

On Thursday, CapitaLand said it will hive off a fifth of its share to MEA in the S$1.4 billion project.

CCT added that the project will now be funded by the three parties in proportion to their stakes in the JV.

A call option has been granted to CCT to acquire CapitaLand’s and MEA’s interest in the completed development. This call option may be exercised any time over a period of three years after the temporary occupation permit (TOP) of the new office tower is obtained.

Lynette Leong, chief executive officer of CapitaCommercial Trust Management Limited, said: “To get majority control of the asset, at the end of the day when it is completed, we should be buying the 60 per cent. However, we will still need to assess whether the returns will be yield-accretive to CCT, when the time comes to exercise the call option.”

CCT believes the property is well positioned to reap the office space demand in 2014, as that there is not going to be any new supply of office space in the Central Business District (CBD) in 2014.

But with a substantial supply of office property coming on over the next three years, analysts are warning of potential headwinds in the sector.

Nicholas Mak, executive director for Research & Consultancy at SLP International, said: “From now until the end of 2014, we are going to see about 7 million square feet of office space being completed. And a large bulk of this – about 4.7 million – is going to be completed this year and next year. This is almost more than double the annual absorption rate for the market.”

Analysts said some older office properties could start seeing a hollowing out, as tenants move to newly completed properties.

This would put downward pressure on office rents.

Ms Leong said: “The rentals are still about 45 per cent lower than the previous peak in 2008…There are some negative rent reversions in the portfolio, because most of the leases were signed during the peak, and once the market catches up, then we should be able to see more stable returns.”

Separately, CCT also announced a lower distributable income of S$54.38 million for the second quarter ended June 30.

This is a fall of 2.3 per cent from S$55.67 million a quarter ago.

In a statement, CCT said this is mainly attributed to “the reduction in rental income following the divestments of two non-Grade A properties and negative rent reversions”.

Gross revenue for the quarter dipped 9.2 per cent to S$91.01 million.

Unitholders can expect a distribution per unit (DPU) payout of 3.77 Singapore cents for the first half of this year.

However, not all is bleak in the office property sector.

Analysts said that while large office plates of 10,000 to 25,000 square feet may face competition from the completion of buildings such as Asia Square and Ocean Financial Centre, there could be good opportunities in the smaller-sized office space.

These are between 1,000 and 3,000 square feet in size.

Source : Channel NewsAsia – 14 Jul 2011

CCT, CapitaLand to jointly develop Market Street Car Park

CapitaCommercial Trust (CCT) and its parent company CapitaLand plan to jointly develop Market Street Car Park into a office tower.

The project cost is estimated to be about S$1.4 billion.

In a joint statement, both companies said that based on this figure, the development is considered financially viable.

The stabilised yield from the completed development is expected to exceed 6 per cent per annum.

CCT will have a 40 per cent stake in the development.

This is in accordance with a regulation preventing real estate investment trusts from undertaking projects that exceed 10 per cent of their asset sizes.

The new tower will be 245 metres high, with an estimated gross floor area of 887,000 square feet.

It is expected to be completed by the end of 2014.

The property has a land lease of 62 years.

Separately, CCT has posted a lower distribution per unit for the first quarter compared to the same period last year.

For the three months ending March, it distribution per unit was 1.84 Singapore cents – down 4.1 per cent.

Revenue for the first quarter fell 10.6 per cent on-year to S$91 million.

The decline was mainly due to a loss in rental income from property divestments and lower revenue from its Six Battery Road property.

Source : Channel NewsAsia – 19 Apr 2011

CapitaLand sells Adelphi units in a deal worth S$218m

Southeast Asia’s largest property developer CapitaLand said on Friday it had sold units at a property in downtown Singapore for a total of S$218 million.

Its indirect subsidiary Adelphi Property Pte. Ltd has sold 86 office units and 77 retail units to Guthrie Pte. Ltd. and its joint venture partner Sun Venture Property Pte. Ltd.

The property is a 999-year leasehold, 10-storey mixed-use building comprising a 5-storey retail podium and a 6-storey office block with 4 levels of basement parking.

“The Adelphi units have potential for capital appreciation whilst offering stable rental income. This investment will further increase the Company’s profile in the real estate sector,” said Guthrie GTS Ltd.

The sale is expected to be completed by 28 January 2011.

Capitaland said in a statement that it expects to recognise a profit of about S$15.7 million after tax from the sale of the 163 units.

Mrs Wong Jen Lai, Senior Vice President, Investment and Asset Management, CapitaLand Commercial Limited, said: “The sale is in line with our active portfolio management strategy to unlock the value of non-core assets and recycle capital.

The office sector remains a core business for CapitaLand and we are confident of the outlook of the office market in Singapore underpinned by the economy’s robust growth.

We will actively seek good quality assets and new opportunities in Singapore that will enhance our core commercial portfolio.”

Source : Channel NewsAsia – 3 Dec 2010

CapitaLand’s new Bedok development likely to draw HDB upgraders

CapitaLand has said its new development at Bedok Town will likely attract potential buyers such as HDB upgraders.

Property analysts believe the area will also be rejuvenated as it now lacks new residential and commercial developments.

The Bedok Bus Interchange will receive a facelift in the fourth quarter of next year. The bus interchange, together with a piece of land next to it, will be transformed and incorporated into a 13-storey residential cum commercial building.

CapitaLand’s integrated development will have about 500 residential units, which make up about 60 per cent of the project. The remaining 40 per cent will be allocated to two basement levels of shopping area.

CapitaLand said the project will cater to about 300,000 residents living around the area, which is said to be the largest HDB estate in Singapore.

Aside from neighbourhood retailers, the new project is set to offer more variety.

Lim Beng Chee, CEO, CapitaMalls Asia, said: “What we’re going to do is something different – like for example, in this place you can’t find a ‘cha chaan teng’ (Chinese tea cafe), you cannot find Ramen, you cannot even find a Starbucks coffee or something similar.

“So I think these are the traits that will complement the F&B side. On top of that, there’ll be some fashion that is affordable that we can bring over – the popular brands currently are Uniqlo.”

The nearest shopping place currently is about three bus stops away – Tampines Mall – or you have to take a train down to Bugis Junction, which is about seven stops away, or you have to go to Parkway Parade.

But after the development, residents can enjoy shopping in a well-serviced shopping mall at their doorstep.

Mr Lim said the government’s recent measures to cool the property market will have little impact on its development because at “this place, there’s a lack of private condominium. I’m quite confident that when we launch it, it’ll be well taken (up).”

Analysts expect the selling price of the residential units to average around S$1,100 per square foot (psf) or more, while the retail rent will likely range between S$15 and S$27 psf per month.

The project is expected to be fully completed in the first half of 2015.

Source : Channel NewsAsia – 13 Sep 2010