CapitaLand Integrated Trust Sells S$688m Office In Singapore

Sale of Chevron House in Raffles Place

Transaction to boost CapitaLand’s financial flexibility

In a move to boost its financial flexibility and capital base, CapitaLand Integrated Commercial Trust (CICT) has sold Chevron House, an office building in Singapore’s central business district, for S$688 million.

The sale, which was completed on July 29, will result in CICT recording a gain of approximately S$262 million. This gain will be used to reduce the trust’s debt and enhance its financial flexibility.

CICT’s manager, CapitaLand Investment, said the sale of Chevron House is part of the trust's ongoing portfolio optimisation strategy. The trust will continue to focus on acquiring and developing high-quality commercial properties in Singapore and other key markets in Asia.

Chevron House is a 30-storey office building located at 30 Raffles Place in Singapore's central business district. The building has a total net lettable area of approximately 265,000 square feet and is currently fully occupied by tenants such as Chevron Singapore and Bain & Company.

The sale of Chevron House is the latest in a series of asset sales by CICT in recent years. In 2021, the trust sold two office buildings in Shanghai for a total of S$460 million. CICT also sold a retail mall in Singapore for S$289 million in 2020.

The sale of Chevron House is expected to have a positive impact on CICT's financial position. The trust's net asset value is expected to increase by approximately S$262 million, and its debt-to-asset ratio is expected to decrease from 35.4% to 33.7%.

The sale of Chevron House is a significant transaction for CICT and is expected to have a positive impact on the trust's financial position and long-term growth prospects.