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Friday, 03 September 2010
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Singapore Capitaland to sell building unit
By: Jonathan Burgos Forbes.com 03.26.08, 8:29 PM ET
SINGAPORE (Thomson Financial) - Singapore's CapitaLand Ltd, the biggest property developer in Southeast Asia, said Thursday it has granted its unit CapitaCommercial Trust an option to buy the One George Street office building on the edge of the Raffles Place central business district for 1.17 billion Singapore dollars.If CapitaCommercial exercises the option, CapitaLand said it will recognize a gain of 47.1 million dollars from the transaction.
'The divestment is in line with the company's strategy of unlocking value from its commercial properties at the appropriate time to recycle capital. The net proceeds will be re-invested for better returns,' CapitaLand said in a statement.
Under the terms of the call option agreement, CapitaLand will help ensure that CapitaCommercial will get a minimum annual net property income from One George Street of 49.51 million dollars within the first five years of owning the property. This translates to a yield of 4.25 percent a year. percent stake in CapitaCommercial Trust.
