CapitaGreen poised for growth on back of strong tenant interest, long-term leases

Over 91% of its current leases will expire after 2019.

CapitaGreen is well-poised for growth thanks to robust interest from potential occupiers and the high number of long-term leases that it has sealed with its tenants.

According to DBS, CapitaGreen has achieved commitment level of 69% as of December 2014, with 91% of leases set expire only after 2019.

Insurance firms make up bulk of CapitaGreen's tenant mix, followed by companies in the energy, commodities, maritime and logistics sectors, along with financial services firms.

"[This] offers long term income visibility. There has also been fairly decent interest from the telecommunications, multimedia and technology sectors. According to media reports, Apple has recently signed a lease for 35k sqft of space, reportedly at S$11-12 psf pm, although we note that, if true, this is still below the Manager’s target rental of S$12.40," stated DBS.