CapitaCommercial Trust snaps up remaining 60% stake in CapitaGreen for $393m

CapitaLand will book a gain of $196m.

CapitaLand has divested its 50% stake in Grade A office tower CapitaGreen for $318.3 million. The stake will be bought by CapitaCommercial Trust, which currently has a 40% stake in the tower. 

CCT will also buy Mitsubishi Estate Asia’s 10% interest in the tower for $74.7 million.

Based on the latest market valuation determined by the two independent valuers, CapitaLand will be realising a gain of approximately $196.0 million, comprising S$8.5 million from the divestment as well as cumulative revaluation gain of approximately $187.5 million recognised between 2013 and 2015.

As at 31 March 2016, CapitaGreen’s committed occupancy was 92.8% with a well-spread lease expiry profile. The property has no leases expiring prior to 2018 which avoids the period of large, new supply in the office market