Wilkie Edge, a 12-storey integrated development comprising office space, retail units and a serviced residence. (Photo: REITsWeek)

The office building known as Wilkie Edge has now been officially removed from CapitaLand Commercial Trust’s portfolio of properties, the REIT announced on 11 September.

CapitaLand Commercial Trust first announced in July 2017 that it was divesting the 12-storey property to Lian Beng (8) Pte Ltd for a sale consideration of SGD280 million.

The sale consideration represents a gain of 53.3% over Wilkie Edge’s original purchase price of SGD182.7 million in 2008, and as such, the REIT is expected to realise a net divestment gain of SGD76 million from the transaction.

“Assuming all the net proceeds from the sale is used to repay existing debt, [CapitaLand Commercial Trust’s] aggregate leverage as at 31 March 2017 would decrease from 38.1% to 35.7%”, said Lynette Leong, CEO of the REIT’s manager, in a statement on the divestment then.

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By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.