Tag Archives: REITS

CapitaLand Commercial Trust to buy remaining 60% stake in CapitaGreen for S$393m

CapitaLand Commercial Trust (CCT), Singapore’s largest office real estate investment trust, will acquire the remaining 60 per cent stake it does not own in the CapitaGreen office tower for S$393 million.

CCT will buy a 50 per cent share from CapitaLand group and another 10 per cent share from Mitsubishi Estate Asia, the company said in a filing to the Singapore Exchange on Monday (May 23).

The purchase will be funded through borrowings from committed bank facilities, CCT said.

CapitaLand said in a separate exchange filing that the acquisition price is based on CapitaGreen’s agreed market value of S$1.6 billion (S$2,276 per square foot), which is the average of two independent valuations.

CCT will exercise a call option to acquire the stakes. This call option is part of a joint venture agreement signed in 2011 and is conditional on market valuation being equal to or above the hurdle price of S$1.59 billion, CapitaLand said.

The developer added that it will make a profit of about S$196 million from the sale of its stake.

Completed in December 2014, CapitaGreen is a Grade A office tower developed on the site of the former Market Street Car Park. The building has a net lettable area of about 703,000sqft, and has an occupancy of 92.8 per cent as of Mar 31.

Source : Channel NewsAsia – 23 May 2016

CapitaLand Mall Trust to redevelop Funan DigitaLife Mall

Funan DigitaLife Mall on North Bridge Road – a shopping centre primarily known for shops selling computers and other electronic gadgets – will be closed from the third quarter of 2016, to be redeveloped into a “creative hub”.

The mall will be closed for about three years, said CapitaLand Mall Trust Management in a press release on Thursday (Dec 10).

The real estate investment trust had hinted at such a move in July, when it suggested the mall could be sold or redeveloped.

Funan DigitaLife Mall has utilised 3.861 of its allowable Gross Plot Ratio of 7.0, and currently has an untapped Gross Floor Area (GFA) of about 388,000 square feet, said the trust.

Mr Wilson Tan, CEO of CapitaLand Mall Trust Management, said: “Given its excellent location and the strong potential for an integrated development on this site, we believe that the redevelopment of Funan DigitaLife Mall will create the greatest value for our unitholders.

“The new building on the Funan site will be an aspirational lifestyle destination that will enthrall shoppers and retailers. It will be an experiential creative hub within the city that engages communities to incubate new ideas and passions, and enables shoppers to enjoy retail in a technology-enabled environment. It will serve as a collaborative platform to connect retail, cultural, learning and business opportunities, and play a big part in the rejuvenation of the Civic District.”

More details on the new development will be announced at a later date, added the real estate investment trust, an indirect wholly-owned subsidiary of the Singapore-listed CapitaLand Limited.

Source : Channel NewsAsia – 10 Dec 2015

CapitaLand Mall Trust sells Rivervale Mall for S$190.5 million

Rivervale Mall at Sengkang will soon have new owners, following CapitaLand Mall Trust’s (CMT) decision to sell the property to a private equity fund managed by AEW Asia for S$190.5 million.

CMT, which announced the sale on Thursday (Oct 15), said it will realise a gain of about S$72 million, after taking into account the divestment fee and other expenses. The property had been valued at S$116 million in June this year.

The sale of Rivervale Mall is expected to be completed on or about Dec 15. Upon completion, CMT will be left with a portfolio of 16 operational shopping malls in Singapore.

Completed in 2001, Rivervale Mall is a three-storey shopping mall with a net lettable area of 81,159 sq ft. Its major tenants include NTUC, Daiso, McDonald’s and United Overseas Bank. The mall had a committed occupancy of 100 per cent as at 30 Sep.

CMT is Singapore’s largest retail property landlord. It is also the Republic’s largest real estate investment trust (REIT) by market capitalisation, and its other properties in Singapore include Tampines Mall, Junction 8, Funan DigitaLife Mall, IMM Building, Plaza Singapura, Bugis Junction and Clarke Quay. The trust also has stakes in Raffles City Singapore and Westgate.

Source : Channel NewsAsia – 15 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

OUE C-REIT to buy into One Raffles Place

OUE Commercial REIT on Wednesday (Jun 10) announced its plans to buy into One Raffles Place, in its maiden acquisition since its initial public offering in January last year.

Under the deal, OUE Commercial REIT plans to buy a stake of between 75 per cent and 83.33 per cent in OUB Centre Limited, which owns One Raffles Place. OUB is the registered owner of the property and it owns 81.54 per cent of the beneficial interest in the property.

This will give the REIT an effective interest of between 61.16 per cent and 67.95 per cent in One Raffles Place.

The agreed value for the acquisition is expected to be between S$1.28 billion and S$1.43 billion. Depending on the stake acquired, the purchase consideration is expected to be between S$1.0 billion and S$1.15 billion.

OUE C-REIT is seeking to strengthen its position within the Singapore office market. Following the deal, its assets under management is expected to increase from S$1.6 billion as at Dec 31, 2014, to S$3.4 billion.

Located in the heart of Singapore’s Central Business District, One Raffles Place is an integrated commercial development comprising two Grade-A office buildings and a recently refurbished retail mall – One Raffles Place Shopping Mall.

Source : Channel NewsAsia – 10 Jun 2015

Keppel REIT to buy one-third stake in MBFC Tower 3

Keppel REIT will buy a one-third stake in Marina Bay Financial Centre (MBFC) Tower 3 for S$1.25 billion from Keppel Land, in one of the largest property market deals this year. The price, which works out to around S$2,790 per square foot, is based on independent valuations by property consultancies Cushman & Wakefield and Savills.

Keppel REIT will pay for the property through a mix of cash and new units issued to Keppel Land. In addition, Keppel REIT will raise gross proceeds of S$228.15 million by issuing new units to institutional investors at a discounted price of S$1.17 per unit.

The 46-storey MBFC Tower 3 is part of the Marina Bay Financial Centre integrated development, which comprises three office towers, two residential developments and an underground mall. Tenants at MBFC Tower 3 include DBS Bank, law firm WongPartnership and commodities giant Rio Tinto.

Keppel REIT, which is managed by a unit of Keppel Land, owns a 99.9 per cent interest in Ocean Financial Centre, a one-third interest in Marina Bay Financial Centre Phase One (comprising Towers 1 and 2 and Marina Bay Link Mall), a one-third interest in One Raffles Quay, and Bugis Junction Towers.

The REIT last changed hands at S$1.23 per unit before trading was suspended earlier on Thursday (Sep 18).

Source : Channel NewsAsia – 18 Sep 2014

REITs have no impact on retail rents: MTI

Real Estate Investment Trusts (REITs) have no impact on retail rents, which are being driven up by the malls’ location and enhancements instead of their ownership.

This is according to a study conducted by the Ministry of Trade and Industry (MTI), following a growing perception that rental prices at retail malls acquired by REITs are rising at a faster rate.

After removing factors such as location and asset enhancement initiatives at malls, “we find that the rents in REIT-owned malls are not statistically different from rents in single-owner malls”, the report said.

“Furthermore, among the malls that are acquired by REITs, we find no evidence to indicate that the rents in these malls increased as a result of the acquisition,” it added.

The study, covering rental data from 35 REIT-owned malls and 76 single-owner malls between 2000 and 2013, followed inquiries over the impact of REITs during the Budget debate in March, when Workers’ Party’s Non-constituency MP Mr Yee Jenn Jong said that REITs are dominating the retail malls and are in a position to steeply raise rental prices.

“Nonetheless, (rental increase) appears to be largely driven by the better physical characteristics of the REIT-owned malls… like asset enhancements and distance to the nearest MRT station,” the MTI report said. It added that further analysis will be conducted on whether acquisition by REITs has improved the performance of retailers to justify higher rental prices.

Source : Channel NewsAsia – 20 May 2014

Frasers Centrepoint Trust to buy Changi City Point for S$305m

Changi City Point at Changi Business Park looks set to become the next shopping mall to be acquired by a real estate investment trust.

Frasers Centrepoint Trust (FCT) said on Tuesday it has entered into a conditional sale and purchase agreement to buy Changi City Point from Ascendas Frasers Pte Ltd
for S$305 million.

Ascendas Frasers is a 50-50 joint venture between Ascendas Development and Frasers Centrepoint Ltd, which is FCT’s sponsor.

Changi City Point — a three-storey mall with one basement level — is known for its various factory outlets.

It is located near the Singapore Expo convention and exhibition centre and the Singapore Expo MRT station.

Source : Channel NewsAsia – 8 Apr 2014

Keppel REIT seeks buyers for Prudential Tower: Sources

Keppel REIT, the second-biggest office property trust in Asia excluding Japan, is seeking buyers for its 30-storey Prudential Tower in Singapore’s financial district, Bloomberg News reported on Monday, citing two people familiar with the matter.

Keppel REIT owns a 92.8 per cent stake in the tower, which was valued at S$490 million as of Dec 31 by independent valuers, according to the company’s filing on Jan 20. The property is fully occupied, that report showed.

Keppel REIT is seeking S$2,400 a square foot for Prudential Tower, one of the sources said, declining to be identified as the information is private. The price would value the trust’s stake at S$531 million, based on the 221,241 square feet of space it owns in the building.

“Keppel REIT does from time to time receive interest to acquire our properties,” it said in an e-mailed response to Bloomberg News queries. “We will consider all potential divestments and acquisitions, and will make an announcement if and when any such deals materialize.”

The Singapore-based real estate investment trust is looking to sell older assets to help fund acquisitions, Chief Executive Ng Hsueh Ling told reporters on Jan 20. The REIT may approach Keppel Land, its biggest shareholder, to buy the developer’s stake in the city’s Marina Bay Financial Centre Tower 3, she said.

Source : Today – 27 Jan 2014

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