reporter2
08-12-15, 16:42
http://www.businesstimes.com.sg/real-estate/ccts-wilkie-edge-being-quietly-marketed-by-agents
CCT's Wilkie Edge being quietly marketed by agents
By Kalpana Rashiwala
[email protected]
@KalpanaBT
Dec 2, 2015
CAPITALAND Commercial Trust's retail and office space at Wilkie Edge in the Selegie area is being quietly marketed for sale by some property agents, The Business Times understands.
The asking price being bandied about is S$1,800-2,000 per square foot on net lettable area, which would translate to a quantum of S$275.8 million to S$306.5 million.
This is substantially higher than the S$194 million (S$1,266 psf) independent valuation for the property as at June 30, 2015, listed in CCT's asset valuation announcement in July.
Wilkie Edge generated net property income of S$4.8 million for the first half ended June 30, 2015. On an annualised basis, this would translate to a net yield of 4.95 per cent based on the S$194 million valuation and a much lower 3.48 per cent and 3.13 per cent based on a pricing of S$275.8 million and S$306.5 million respectively.
Wilkie Edge is on a site with a balance lease term of about 89 years ending Feb 20, 2105. The 12-storey complex comprises not only the office and retail space that is owned by CCT but the 154-unit Citadines Mount Sophia Property Singapore, which is currently leased for the balance of the site lease (less a day), to Ascott Residence Trust.
CCT's space is fully occupied. Tenants include SF Consulting, Kaplan Learning Institute and AstraZeneca Singapore.
Wilkie Edge may have a District 9 address but a seasoned property agent described its location as being in a mixed sort of area, between Dhoby Ghaut MRT interchange station and Little India.
When contacted, a spokeswoman for CapitaLand Commercial Trust Management Limited, the manager of CCT, said: "Off and on, we receive unsolicited offers for our properties and we believe that other office building owners do as well."
Market watchers reckon agents could be sussing out interest in Wilkie Edge from potential buyers with a view to interest CCT to sell the asset.
"It makes sense for CCT to dispose of Wilkie Edge since it is a non-core asset, being a relatively small contributor to the group's total earnings. Moreover, the asset is not in sync with the Grade A office profile of the majority of CCT's properties," said an industry observer.
Furthermore, CCT could put proceeds from any sale of Wilkie Edge to more productive use - including contributing towards funding a potential redevelopment of the Golden Shoe Car Park, which enjoys a prime location in Raffles Place.
In October, CapitaLand Mall Trust (CMT) agreed to sell Rivervale Mall for S$190.5 million to a private equity fund managed by AEW Asia.
This is significantly higher than the latest independent valuation, as at end-June 2015, of the property at S$116 million. CMT will realise a gain of about S$72 million from the sale of Rivervale Mall after taking into account the divestment fee and other divestment-related expenses.
CCT's Wilkie Edge being quietly marketed by agents
By Kalpana Rashiwala
[email protected]
@KalpanaBT
Dec 2, 2015
CAPITALAND Commercial Trust's retail and office space at Wilkie Edge in the Selegie area is being quietly marketed for sale by some property agents, The Business Times understands.
The asking price being bandied about is S$1,800-2,000 per square foot on net lettable area, which would translate to a quantum of S$275.8 million to S$306.5 million.
This is substantially higher than the S$194 million (S$1,266 psf) independent valuation for the property as at June 30, 2015, listed in CCT's asset valuation announcement in July.
Wilkie Edge generated net property income of S$4.8 million for the first half ended June 30, 2015. On an annualised basis, this would translate to a net yield of 4.95 per cent based on the S$194 million valuation and a much lower 3.48 per cent and 3.13 per cent based on a pricing of S$275.8 million and S$306.5 million respectively.
Wilkie Edge is on a site with a balance lease term of about 89 years ending Feb 20, 2105. The 12-storey complex comprises not only the office and retail space that is owned by CCT but the 154-unit Citadines Mount Sophia Property Singapore, which is currently leased for the balance of the site lease (less a day), to Ascott Residence Trust.
CCT's space is fully occupied. Tenants include SF Consulting, Kaplan Learning Institute and AstraZeneca Singapore.
Wilkie Edge may have a District 9 address but a seasoned property agent described its location as being in a mixed sort of area, between Dhoby Ghaut MRT interchange station and Little India.
When contacted, a spokeswoman for CapitaLand Commercial Trust Management Limited, the manager of CCT, said: "Off and on, we receive unsolicited offers for our properties and we believe that other office building owners do as well."
Market watchers reckon agents could be sussing out interest in Wilkie Edge from potential buyers with a view to interest CCT to sell the asset.
"It makes sense for CCT to dispose of Wilkie Edge since it is a non-core asset, being a relatively small contributor to the group's total earnings. Moreover, the asset is not in sync with the Grade A office profile of the majority of CCT's properties," said an industry observer.
Furthermore, CCT could put proceeds from any sale of Wilkie Edge to more productive use - including contributing towards funding a potential redevelopment of the Golden Shoe Car Park, which enjoys a prime location in Raffles Place.
In October, CapitaLand Mall Trust (CMT) agreed to sell Rivervale Mall for S$190.5 million to a private equity fund managed by AEW Asia.
This is significantly higher than the latest independent valuation, as at end-June 2015, of the property at S$116 million. CMT will realise a gain of about S$72 million from the sale of Rivervale Mall after taking into account the divestment fee and other divestment-related expenses.