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CapitaLand Commercial Trust to buy remaining 60% of CapitaGreen for S$393m
CAPITALAND Commercial Trust (CCT) is acquiring the remaining 60 per cent of the CapitaGreen office building for about S$393 million, managers of the real estate investment trust announced on Monday before the market opened.
The total outlay, which will be funded through borrowings from committed bank facilities, comprises a purchase consideration of S$183.4 million and S$198.5 million of existing unitholders' loans and accrued interest and acquisition-related expenses.
The acquisition could raise CCT's leverage to 37.7 per cent from 30.1 per cent.
CapitaLand, which holds about 31.96 per cent of CCT, currently holds a 50 per cent direct stake in CapitaGreen. Its share of the total consideration is about S$318 million.
Completion of the deal is expected to take place between the third and fourth quarters of 2016.
CapitaGreen is an office building sitting on the site of the former Market Street Car Park near Raffles Place with a net lettable area of about 703,000 square feet. The building currently has a committed occupancy of 92.8 per cent.