CCT builds a war chest with Wilkie Edge divestment

The transaction could yield around $280m.

With its recent divestment of the Wilkie Edge, CapitaLand Commercial Trust (CCT) could be building a war chest for potential acquisitions in the future, an analyst report from RHB said.

CCT announced the proposed sale of its 12-storey integrated development, Wilkie Edge to Lian Beng (8) Pte Ltd for $280m.

RHB notes that with the divestment yields assuming a full conversion of convertible bonds worth $175m due by September 2017, CCT is expected to raise total gross proceeds of $1.05b.

"We expect part of the proceeds to be used for the funding of the potential redevelopment of Golden Shoe Car Park (GSCP), which is pending final assessments and feasibility study. We also expect CCT to be on the lookout for potential acquisitions to offset some of the DPU shortfall. One potential possibility may be CCT acquiring a minority stake in Asia Square Tower 2 along with CapitaLand," RHB said.