Singapore-listed CapitaCommercial Trust (SGX:C61U) has received yield protection amount of S$8 million from parent company CapitaLand Singapore Limited in relation to its One George Street property for the financial period from 1 January 2013 to 10 July 2013.
|The minimum net property income of S$49.5 million represents a 4.25 percent per annum yield of S$1,165 million.|
One George Street has failed to meet a net property income figure of S$49.5 million for the period mentioned above. Under a deed of yield protection made during the building's acquisition, CapitaLand Limited will provide a yield protection to the REIT should property from the income not meet the 4.25 percent per annum on the purchase consideration of S$1,165.0 million for a period of five years from the date of completion of purchase on 11 July 2008.
This means that yield protection for the property has expired. CapitaCommercial Trust has not made further details on how the financial performance One George Street will affect its earnings as a whole for the quarter.
Units of CapitaCommercial Trust retreated slightly by 0.7 percent to close the trading day at S$1.42