City Energy renews lease, takes additional units at CICT’s The Atrium@Orchard
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GAS company City Energy has entered into a lease agreement with CapitaLand Integrated Commercial Trust (CICT) to renew the tenancy of its existing premises at level 3 of the trust’s The Atrium@Orchard, as well as to ink a new lease for adjacent units on the same level from Oct 13 this year to Oct 12, 2025.
In a bourse filing on Friday (Jul 22), CICT said an estimated aggregate sum of S$1.47 million is payable by City Energy as gross rent for the lease period of 3 years.
The trust said City Energy’s tenancy would benefit CICT as it improves the occupancy rate at The Atrium@Orchard. The rent from City Energy would also add to CICT’s income.
The rent was calculated based on the monthly gross rent payable by City Energy during the lease period, and has been reviewed by an independent valuer to be in accordance with market standards, said CICT.
The rent was reportedly benchmarked against comparable leases in similar retail malls, taking into account factors such as term of the lease, unit size, unit configuration and orientation, floor level and the prestige of the building.
“The manager is of the view that the City Energy tenancy is on normal commercial terms and not prejudicial to the interests of CICT and its minority unitholders,” said the trust.
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Units of CICT closed on Friday flat at S$2.09.
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