CCT sells Wilkie Edge to Lian Beng for $280m

It is part of the groups' reconstitution strategy.

CapitaLand Commercial Trust announced that it will be selling Wilkie Edge to Lian Beng for a sale consideration of $280m.

CCT is expected to recognise an estimated net gain of approximately $76m over the December 2016 valuation. As at the end of March this year, Wilkie Edge had a committed occupancy rate of 99.9%.

Based on Wilkie Edge’s net property income of $9.5m for the 12 months preceding 31 March 2017 and the sale consideration, it translates to a net property yield of 3.39% per annum.

Lynette Leong, CEO of CapitaLand Commercial Trust Management Limited said, “The sale of Wilkie Edge is in line with the Trust’s portfolio reconstitution strategy to rejuvenate its portfolio and recycle capital to give us the financial flexibility to invest in more attractive growth opportunities. Assuming all the net proceeds from the sale is used to repay existing debt, CCT’s aggregate leverage as at 31 March 2017 would decrease from 38.1% to 35.7% Together with our recent sale of 50% of One George Street, the sale proceeds will give us comfortable headroom to invest in opportunities that will continue to generate sustainable returns for our unitholders.”

Located at the junction of Wilkie Road and Selegie Road, Wilkie Edge is a 12-storey integrated development comprising office and retail units as well as a serviced residence, Citadines Mount Sophia, which is leased to Ascott Residence Trust for 96 years from 17 November 2008. The purchaser shall take over all existing rights and obligations in relation to this existing lease.