CCT divests One George Street for S$1.18b into limited liability partnership

CAPITALAND Commercial Trust (CCT) has sold One George Street for S$1.18 billion into a limited liability partnership, which it will own 50 per cent of.

CCT will hold 50 per cent of One George Street LLP (OGS LLP) with joint venture partner, OGS (II) Limited, a special purpose vehicle owned by insurer FWD Group. The joint venture partner will hold the remaining 50 per cent.

At S$1.18 billion, the agreed price translates to S$2,650 per square foot (psf) based on the building's net lettable area. It is also 16.7 per cent above the property's valuation of S$1.01 billion (S$2,271 psf) at the end of last year. Based on One George Street's net property income of S$38.0 million for the 12 months preceding March 31, 2017 and the agreed value, the net property yield translates to 3.2 per cent per annum.

CCT is expected to recognise an estimated gain of S$84.6 million on the divestment of the property on a 50 per cent basis. The expected net gain is S$79.7 million.

One George Street is a 23-storey Grade A office building conveniently located near Raffles Place, Clarke Quay and Chinatown MRT stations.