CapitaCommercial Trust (CCT) has been given a call option to buy the 1 George Street building for nearly S$1.2 billion.
This translates to S$2,600 per square foot of net lettable area. CapitaLand will also provide yield protection to CCT, ensuring a minimum net property income of some S$50 million per annum.
This means a net property yield of 4.25% per annum on the purchase price for five years until 2013.
CCT said the acquisition will be funded by debt and it will not place out new units or do a rights issue.
1 George Street was completed in 2004 and is one of the newest premier commercial properties in Singapore catering to the financial services industry and multinational companies.
The property is located in the core of Singapore's central business district, within walking distance to the Raffles Place and Clarke Quay MRT stations.
It is currently 100% occupied by tenants that include The Royal Bank of Scotland, law firm WongPartnership and insurer Lloyd's of London. - CNA/ac
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