CapitaLand Commercial Trust's One George Street (Photo: CapitaLand Commercial Trust)

CapitaLand Integrated Commercial Trust relinquishes stake in One George Street

CapitaLand Integrated Commercial Trust (CICT) is relinquishing its stake in the entity that partially owns One George Street.

The 23-storey office tower was previously owned by CapitaLand Commercial Trust (CCT).

The REIT sold the property for SGD1.18 billion into a limited liability partnership called OGS LLP, which is 50% owned by CCT.

This stake was inducted into CICT’s portfolio after CCT and CapitaLand Mall Trust (CMT) merged.

OGS LLP will now divest its whole stake in One George Street to SG OGS, a private limited company, for SGD1.28 billion.

Net proceeds to CICT from the sale would be approximately SGD344.8 million.

This will provide CICT with greater financial flexibility to repay debt, to finance any capital expenditure and asset enhancement works, investments, or finance general corporate and working capital requirements, said the REIT.

“The sale is not expected to have any material effect on the net asset value per unit of CICT and the distribution per unit of CICT for the financial year ending 31 December 2021”, the REIT added.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.