Will CICT exit One George Street?

If it can buy a new asset at a higher property yield than the exit yield for One George St, that would benefit unitholders

Kalpana Rashiwala

Published Fri, Apr 30, 2021 · 05:50 AM

Hock Lock Siew

IN A message to unitholders in its annual report, the manager of CapitaLand Integrated Commercial Trust (CICT) had indicated in February that the newly merged trust will be looking to optimise its portfolio.

Tony Tan Tee Hieong, chief executive of CICT's manager, had said: "We have started our portfolio reconstitution strategy, to review and evaluate our existing properties for other enhancement opportunities or potential divestments to recycle capital."

A likely candidate for divestment is the trust's half-stake in One George Street, about 400 metres from Raffles Place MRT station, analysts say.

Talk on the grapevine is that a process engaging potential buyers for this asset is underway. Following the initial round, three parties are expected to submit their…