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CCT divests Wilkie Edge for S$280.0 million

Wilkie Edge_CapitaLand

Wilkie Edge_CapitaLand

Singapore, 3 July 2017 – CapitaLand Commercial Trust Management Limited (CCTML or the Manager), the Manager of CapitaLand Commercial Trust (CCT or the Trust), is pleased to announce that its trustee, HSBC Institutional Trust Services (Singapore) Limited has today entered into a sale and purchase agreement for the sale of Wilkie Edge to Lian Beng (8) Pte. Ltd. for a sale
consideration of S$280.0 million or S$1,812 per square foot (psf) based on the building’s net lettable area. The sale is expected to be completed in September 2017.

The sale consideration of S$280.0 million was negotiated on a willing-buyer and willing-seller basis. This sale consideration is 39.3% above the 31 December 2016 valuation of S$201.0 million or S$1,301 psf and 53.3% higher than its original purchase price of S$182.7 million in 2008. CCT is
expected to recognise an estimated net gain of approximately S$76.0 million over the 31 December 2016 valuation. As at 31 March 2017, Wilkie Edge had a committed occupancy rate of 99.9%. Based on Wilkie Edge’s net property income of S$9.5 million for the 12 months preceding 31 March 2017 and the sale consideration, it translates to a net property yield of 3.39% per annum.

Ms Lynette Leong, CEO of CCTML said, “The sale of Wilkie Edge is in line with the Trust’s portfolio reconstitution strategy to rejuvenate its portfolio and recycle capital to give us the financial flexibility to invest in more attractive growth opportunities. Assuming all the net proceeds from the sale is used to repay existing debt, CCT’s aggregate leverage as at 31 March 2017 would decrease from 38.1% to 35.7%. Together with our recent sale of 50% of One George Street, the sale proceeds will give us comfortable headroom to invest in opportunities that will continue to generate sustainable returns for our unitholders.”

Located at the junction of Wilkie Road and Selegie Road, Wilkie Edge is a 12-storey integrated development comprising office and retail units as well as a serviced residence, Citadines Mount Sophia, which is leased to Ascott Residence Trust for 96 years from 17 November 2008. The purchaser shall take over all existing rights and obligations in relation to this existing lease.

In close proximity to the Dhoby Ghaut and Little India MRT interchanges as well as Bugis MRT station, Wilkie Edge is a leasehold property, with a lease expiring on 20 February 2105 with a total net lettable area of 154,528 square feet (sq ft). As at 31 March 2017, Wilkie Edge contributed 3% to CCT’s 1Q 2017 net property income. The top three tenants are SF Consulting Pte Ltd, Kaplan Learning Institute Pte Ltd and Tower Research Capital (Singapore) Pte Ltd.

About CapitaLand Commercial Trust (www.cct.com.sg)

CapitaLand Commercial Trust is Singapore’s first commercial REIT with a market capitalisation of approximately S$4.9 billion. CCT aims to own and invest in real estate and real estate-related assets which are income producing and predominantly used, for commercial purposes. The total value of CCT’s deposited properties is S$8.7 billion as at 31 March 2017 comprising a portfolio of 10 prime commercial properties in Singapore. The properties in Singapore are Capital Tower, Six Battery Road, One George Street (50.0% interest through OGS LLP), Raffles City (60.0% interest through RCS Trust), CapitaGreen (100.0% interest through MSO Trust), HSBC Building, Twenty
Anson, Bugis Village, Wilkie Edge and Golden Shoe Car Park.

CCT has been a constituent of FTSE4Good Index Series (FTSE4Good), a series of benchmark and tradable indices derived from the globally recognised FTSE Global Equity Index Series. FTSE4Good is designed to track the performance of companies meeting international corporate responsibility standards and forms the basis for over 70 different funds and investment products. CCT is also a constituent of other widely recognised benchmark indices such as MSCI, the SGX Sustainability Index and FTSE Straits Times Index.

CCT is managed by an external manager, CapitaLand Commercial Trust Management Limited, which is an indirect wholly owned subsidiary of CapitaLand Limited, one of Asia’s largest real estate companies headquartered and listed in Singapore.

CapitaLand
168 Robinson Road

Chia Sher Ling
AVP, Group Communications
DID: (65) 6713 3672
Email: chia.sherling@capitaland.com

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