Capitaland Integrated Commercial Trust renews leases with Temasek subsidiaries

Benjamin Cher

Published Mon, May 23, 2022 · 08:58 PM

THE leases of 3 properties belonging to Capitaland Integrated Commercial Trust : C38U 0% (CICT) are being renewed with Temasek subsidiaries, triggering an interested persons transactions announcement.

CICT will be renewing leases between StarHub : CC3 0%, Temasek Foundation and a new service agreement with Certis Cisco. StarHub and Certis Cisco are subsidiaries of Temasek while Temasek Foundation is an associate of Temasek.

StarHub is renewing its ground floor lease at Plaza Singapura for S$5.2 million commencing for 3 years from May 28, 2022. The rent was benchmarked against comparable leases in similar malls, and has been reviewed by an independent valuer to be in accordance with market standards.

Temasek Foundation is renewing its lease for the fourth floor of Atrium@Orchard for S$1.5 million commencing for 5 years from Sept 1, 2022. The space is classified as a community/sports facility scheme space, hence the rental is charged on a different basis compared with other commercial spaces. An independent valuer has reviewed the renewal as in accordance with market standards.

CICT will be entering into a new service agreement with Certis Cisco to provide security for Raffles City Singapore for S$4.3 million by RCS Trust. The fees were benchmarked against Certis Cisco fees charged for other CICT properties and took into account additional costs driven by the outcome of the review of the Progressive Wage Model in November 2021. The manager is of the view that the agreement is on normal commercial terms.

The StarHub renewal benefits CICT by improving the occupancy rate at Plaza Singapura and adds to CICT’s income. The Temasek Foundation renewal will improve the occupancy rate at The Atrium@Orchard and add to CICT’s income. The Certis Cisco agreement will align the technological infrastructure across CICT’s properties, and optimise operations and productivity gains with technology solutions.