Central Icon (CICT) Divests 21 Collyer Quay for $688m to Bolster Capital

Singapore, August 12, 2023

Central Icon (CICT), a real estate investment trust (REIT) listed on the Singapore Exchange, has divested 21 Collyer Quay for $688 million to bolster its capital position.

Details of the Transaction

The divestment was made to a consortium led by Nan Fung Group, a Hong Kong-based property developer. The sale price represents a 19.2% premium over the property's book value as of December 31, 2022.

CICT will use the proceeds from the sale to reduce its debt and strengthen its financial position. The REIT had a gearing ratio of 39.1% as of March 31, 2023, which is above the industry average.

21 Collyer Quay

21 Collyer Quay is a Grade A office building located in Singapore's Central Business District. The property has a total net lettable area of 232,271 square feet and is currently fully occupied.

The building was completed in 1992 and has undergone several renovations over the years. It is a popular choice for tenants due to its central location and proximity to public transportation.

Impact on CICT

The divestment of 21 Collyer Quay is expected to have a positive impact on CICT's financial position. The REIT will be able to reduce its debt and improve its gearing ratio.

CICT plans to use the proceeds from the sale to invest in new properties and redevelop existing ones. The REIT is looking to expand its portfolio of office, retail, and industrial properties in Singapore and other gateway cities in Asia.

Conclusion

The divestment of 21 Collyer Quay is a strategic move by CICT to bolster its capital position and improve its financial flexibility. The REIT will be able to use the proceeds from the sale to reduce its debt and invest in new properties.

The transaction is expected to have a positive impact on CICT's unit price and distribution yield. The REIT is well-positioned to continue to grow its portfolio and provide investors with stable returns.