Capitaland Integrated Commercial Trust Sells 21 Collyer Quay 688 Mil
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CapitaLand Integrated Commercial Trust (CICT) has successfully divested 21 Collyer Quay, an office building in Raffles Place, for $688 million. According to a filing to the Singapore Exchange on November 12, the sale was made to a third party unrelated to CICT. The 999-year leasehold property, spanning 213,000 sq ft, was sold at a price equivalent to $3,230 per square foot.
This sale price was determined through a willing-buyer-willing-seller approach and is in line with an independent valuation by Savills. Additionally, taking into account the building’s annualized net property income for the period ending September 30, 2024, CICT’s exit yield is expected to be below 3.5%. The proceeds from the divestment are estimated to be approximately $681.7 million.
21 Collyer Quay, a 21-storey building situated in the Central Business District, has been fully occupied by co-working operator WeWork since 2021. The company took over the lease from HSBC in 2021 when the banking firm relocated its headquarters to Marina Bay Financial Centre Tower 2. Subsequently, WeWork launched its flagship location at the building in September 2022, following a design and fit-out of the space.
In April this year, after filing for bankruptcy in the US in November 2023, WeWork announced that it had concluded lease negotiations with its Singapore office landlords and planned to remain in its current buildings for the foreseeable future. CICT’s website states that WeWork Singapore has a seven-year lease for 21 Collyer Quay until 2028.
Overall, CICT’s divestment of 21 Collyer Quay marks a successful transaction, in line with the company’s strategy to optimize its portfolio and deliver strong returns to its shareholders.