CapitaLand Integrated Commercial Trust Sells 21 Collyer Quay for $688 Million

A landmark transaction in Singapore's commercial real estate market

CapitaLand Integrated Commercial Trust (CICT) has announced the sale of its 21 Collyer Quay property for S$688 million to a consortium led by SC Capital Partners and a Chinese fund management company.

Details of the transaction

The sale price represents a premium of 5.7% over the property's book value as of December 31, 2022. CICT will recognize a gain of approximately S$100 million from the sale.

The transaction is expected to complete in the second half of 2023, subject to customary closing conditions.

21 Collyer Quay: A prime asset in Singapore's CBD

21 Collyer Quay is a 29-storey Grade A office building located in the heart of Singapore's Central Business District (CBD). The property has a net lettable area of approximately 410,000 square feet and is currently 98% occupied by a mix of tenants from the financial, technology, and professional services sectors.

The building is well-connected by public transportation, with Raffles Place MRT station just a short walk away. It is also surrounded by a variety of amenities, including restaurants, cafes, and shops.

CICT's strategy

The sale of 21 Collyer Quay is in line with CICT's strategy to recycle capital from mature assets and redeploy it into higher-growth opportunities.

CICT has a portfolio of 112 properties in Singapore, Australia, and New Zealand, with a total asset value of approximately S$29 billion.

Industry commentary

The sale of 21 Collyer Quay is seen as a positive sign for Singapore's commercial real estate market.

Mr. Mark Lampard, Head of Real Estate at SC Capital Partners, said: "We are pleased to acquire this iconic asset in Singapore's CBD. 21 Collyer Quay is a well-located, high-quality property with a strong tenant base. We believe that this investment will generate stable income and capital appreciation over the long term."

Mr. Lim Beng Chee, CEO of CICT, said: "The sale of 21 Collyer Quay will allow us to recycle capital and reinvest in higher-growth opportunities. We remain committed to growing our portfolio of quality commercial assets in Singapore and other key markets."

Conclusion

The sale of 21 Collyer Quay is a significant transaction in Singapore's commercial real estate market. It reflects the continued strength of the CBD market and CICT's strategy to recycle capital and invest in higher-growth opportunities.