Singapore-listed office REIT, CapitaLand Commercial Trust, announced on 2 May that it will be divesting One George Street for SGD1.18 billion (USD0.85 billion).
The property will be sold to a limited liability partnership, One George Street LLP, which has been newly established in a 50-50 joint venture with a special purpose vehicle owned by insurer FWD Group.
The agreed value, which translates to SGD2,650 per square foot, is 16.7% above the property’s 31 December 2016 valuation of SGD1,014.0 million, or SGD2,271 per square foot.
CapitaLand Commercial Trust will continue to own One George Street through its 50.0% interest in the joint venture.
“The divestment of One George Street to One George Street LLP is in line with the trust’s portfolio reconstitution strategy to proactively enhance the value of [ CapitaLand Commercial Trust’s ] portfolio and increase our financial flexibility to invest in other compelling and sustainable growth opportunities so as to improve returns to unitholders”, said Lynette Leong, CEO of the REIT’s manager.