Tag Archives: One George Street

CapitaLand Commercial Trust said to seek sale of One George Street office tower

CapitaLand Commercial Trust, Singapore’s largest office real estate investment trust by value, is selling an office tower in the city-state’s central business district, according to a person familiar with the transaction.

CapitaLand Commercial is seeking to sell the 23-story One George Street building in the Raffles Place office district, the person said, asking not to be named as the information is private.

The building, whose tenants include Royal Bank of Scotland Group Plc and Diageo Singapore Pte, has 41,564 sq m of lease area, according to the trust’s website. The tower, bought in 2008 for S$1.17 billion, was valued at S$975 million as of Dec 31, 2014, the website showed.

CapitaLand Commercial Trust Management Ltd, the manager of CapitaLand Commercial Trust, didn’t comment on its plans for One George Street beyond saying it “adopts an active portfolio management strategy to evaluate plans for CCT’s properties from time to time,” according to an e-mailed statement in response to a query.

The proposed sale comes as another prime office tower, Asia Square Tower 1, has been put up for sale by BlackRock Inc, in a deal that when concluded could make it the biggest office transaction in Singapore. The value of office buildings in the city-state fell 0.1 per cent in the quarter ending Sept 30 from the previous three months while shops declined 0.3 per cent, according to the Urban Redevelopment Authority.

Rents in the central business district fell 4.5 per cent in the three months ended Sept 30 from the previous quarter, according to Jones Lang LaSalle Inc. Rents will trend lower this year as about 3.07 million square feet of office supply will be completed, it said.

The vacancy rate in the central business district increased to 6.1 per cent in the three months to September.

Vacancies are expected to rise gradually over the next few quarters as some occupiers, mainly from the financial sector, give up space, Jones Lang LaSalle said.

13 Jan 2016

MNCs snap up prime office space

DESPITE the sluggish economy, downtown office rentals show no sign of budging from high, with multi-nationals seemingly largely unfazed by top dollar demands for prime space.

Yesterday, office landlord CapitaCommercial Trust (CCT) announced that mining giant BHP Billiton had renewed its lease at Capital Towers, while JPMorgan Chase expanded its premises by one-and-a-half floors in the same building.

Also, Korea’s Shinhan Bank has taken up new space at One George Street, which comes under CCT’s portfolio as well. That’s a total of 77,900 sq ft. These leases will run between two to three years.

The newly-committed, “higher end” rentals are between $16 and $20 psf per month, a CCT spokesperson said. Still, they “are in line with the rental rates achieved at comparable Grade A office buildings in the respective micro-markets”.

CB Richard Ellis reported that the average Grade A office rental stood at $18.80 psf per month in the second quarter of this year, up 15 cents from the preceding quarter.

Although it has not been unusual for office rents to hit $20 psf per month at the peak of the property bull run, “nowadays, it’s less common”, said Knight Frank research director Nicholas Mak. “You also have to look at the age and the quality of the building. Capital Tower is the newest building in that part of Robinson Road.”

Ms Lynette Leong, chief executive of CapitaCommercial Trust Management, described the latest transactions as “a vote of confidence”.

Looking ahead, analysts expect central business district space constraints to ease as more firms and Government agencies move out to cheaper decentralised areas and new supply comes on stream.

Still, Cushman & Wakefield managing director Donald Han expects rents to stay firm for the next 12 to 24 months as the market remains “fairly tight”.

Source : Today – 5 Sep 2008