CapitaLand divests 163 units at The Adelphi for $218.132mln

The group expects to generate an after-tax profit of about S$15.7mln.

CapitaLand Limited (“CapitaLand”) through its indirect wholly-owned subsidiary, Adelphi Property Pte Ltd, has today entered into four sale and purchase agreements with Guthrie-SV (Commercial) Pte. Ltd., Guthrie-SV (Commercial A) Pte. Ltd., Guthrie-SV (Retail) Pte. Ltd. and Guthrie-SV (Retail 1) Pte. Ltd. respectively, for the divestment of its 163 strata-titled units in The Adelphi, a mixed-use development located in the heart of Singapore’s Downtown district, for a total consideration of S$218.132 million, according to a CapitaLand report.

The 163 strata-titled units, comprising 86 office units and 77 retail units, totalling 16,543 square metres represent 55.13% of the total share value of The Adelphi. The book value of the 163 strata-titled units is S$200.00 million as at November 2010. CapitaLand expects to recognise a profit of approximately S$15.7 million after tax upon the completion of the sale, which is expected to take place by 28 January 2011. The sale of the units was arrived at on a willing-buyer and willing-seller basis.

Mrs Wong Jen Lai, Senior Vice President, Investment and Asset Management, CapitaLand Commercial Limited, said: “The sale is in line with our active portfolio management strategy to unlock the value of non-core assets and recycle capital. The office sector remains a core business for CapitaLand and we are confident of the outlook of the office market in Singapore underpinned by the economy’s robust growth. We will actively seek good quality assets and new opportunities in Singapore that will enhance our core commercial portfolio.”

Located at 1 Coleman Street, Singapore, The Adelphi is a 999-year leasehold 10-storey mixed-use building comprising a five-storey retail podium and a six-storey office block with four levels of basement parking.