CCT sells One George Street for $1.18 bil to limited liability partnership

By Michael Lim / The Edge Property | May 2, 2017 4:00 PM SGT
CapitaLand Commercial Trust is divesting One George Street to One George Street LLP, a limited liability partnership. CCT will hold 50% of OGS LLP, with joint-venture (JV) partner OGS (II), a special purpose vehicle owned by insurer FWD Group, holding the remaining 50%.
The agreed value of OGS is $1.18 billion, or $2,650 psf, which is 16.7% above OGS’s latest valuation of $1 billion ($2,271 psf) as at Dec 31, 2016. Based on the net income of $38 million for the 12 months preceding March 31 this year, this translates into an exit net property income yield of 3.2%.
Under the agreement, if the JV does not achieve an agreed after-tax return on equity, CCT will direct OGS LLP to pay FWD Group a portion of income from OGS LLP to which CCT is entitled. After the disposal, OGS will continue to be managed by CapitaLand Commercial Trust Management for an initial term of five years, which may be renewed at the option of CCTML for successive periods of three years each.
ADVERTISEMENT
CCT expects to recognise an estimated net gain of $79.7 million from the sale of an effective 50% interest in OGS. CCT’s net asset value per unit is expected to increase 2.3% y-o-y to $1.77 from $1.73, with pro-forma distribution per unit falling 4.4% to 8.68 cents from 9.08 cents.
Follow Us On
Our Sites
Edgeprop.sg (previously known as The Edge Property Singapore) – is the best property portal for home-seekers, buyers, investors and real estate agents alike in Singapore. On EdgeProp, you will be able to find all the latest news and views, informational guides, historical transactions and rental searches, and research data and analysis.
Whether you are looking to buy, sell or rent apartments, condominiums, executive condos, HDB flats, landed houses or commercial properties, we bring you Singapore’s the most comprehensive and up-to-date property news and thousands of listings to facilitate your property decisions.
Make better decisions with our easy-to-use free and paid tools. The Edge Fair Value tool lets users calculate the fair value of a property and find properties below market value in Singapore. Meanwhile, discover all things en bloc, including Singapore en bloc news, trends and our En Bloc Calculator, which helps to determine the probability of a Singapore project being put up for collective sale.
Web Version 3.7.5
Aside from that, EdgeProp also offers a market trend tracker that lets you access historical property data, sales volume and compare how similar properties are selling, a heat map that lets you find out where all Singapore’s most popular property sales locations are, a HDB lease tool that lets you calculate your HDB tenure, an affordability calculator, and a property watch list to track your preferred Singapore property by project or location, as well as new launches.
On the lookout for undervalued property or buying to rent? EdgeProp’s powerful search filters let you personalise your property-seeking experience – whether you are looking for a property near MRT stations, amenities like schools and childcare centres, or a good-value condo with a sea view – so that you find exactly what you are looking for.