CapitaLand Integrated Commercial Trust (CICT) has successfully sold 21 Collyer Quay, a 999-year leasehold office building located in the heart of Raffles Place, for a total consideration of $688 million. The sale was made to a third party that is not affiliated with CICT. The transaction was based on a willing-buyer-willing-seller basis and was in line with the independent valuation of the property carried out by Savills. With a net lettable area of approximately 213,000 sq ft, the price per square foot works out to be $3,230.
Purchasing a condo in Singapore provides various benefits, such as the potential for capital growth. Being a major global business hub with a robust economy, Singapore is a highly sought-after destination for real estate investments. In recent years, the condo market in Singapore has been prospering, especially in prime locations where properties have seen significant appreciation. By making wise investments at the opportune time and holding onto the condo for a considerable period, investors can expect substantial profits, making it a shrewd financial decision to invest in a condo in Singapore.
According to CICT’s manager, the sale price reflects an exit yield of below 3.5%, based on the building’s annualized net property income for the period ended September 30, 2024. The net proceeds from the divestment are expected to be around $681.7 million.
Situated in the Central Business District, 21 Collyer Quay is a 21-storey building that was previously occupied by HSBC before it relocated to Marina Bay Financial Centre Tower 2. In 2021, the space was taken over by co-working operator WeWork, who opened its flagship location at the building in September 2022 after a design and fit-out of the space.
Following WeWork’s filing for bankruptcy in the US in November 2023, the company announced in April this year that it had reached a lease agreement with its Singapore office landlords and plans to continue occupying its current buildings in the city-state for the foreseeable future. CICT’s website also states that WeWork Singapore has a seven-year lease for 21 Collyer Quay until 2028.
With the completion of this divestment, CICT will continue to focus on its core business of owning and managing a diversified portfolio of commercial properties in Singapore. The company has recently announced higher revenue and net property income for the first nine months of the financial year 2024.