CCT sells Twenty Anson at 19.2% above valuation

CapitaLand Commercial Trust (CCT) is selling Twenty Anson, a 20-storey office building in Tanjong Pagar, to an unrelated third party for $516 million. The selling price translates into $2,503 psf, based on the building’s net lettable area of about 206,000 sq ft.

The sale price was arrived at through a bidding process, and is 19.2% above the $433 million valuation at December 31 last year. It is also 20% higher than the $430 million that CCT paid for the building in 2012.

The sale consideration translates into a net property yield of 2.7%, based on Twenty Anson’s net property income of S$13.8 million for the 12 months preceding March 31, 2018.

Completed in 2009, Twenty Anson is located at 20 Anson Road and has 88 more years left on the lease. It has a committed occupancy rate of 94.3%, with the top three tenants being Toyota Motor Asia Pacific, BlackRock Advisors Singapore, and BCD Travel Asia Pacific.

As at March 31, Twenty Anson accounted for about 3% of CCT’s net property income. On a pro-forma basis, the impact of the divestment on CCT’s distribution is expected to be neutral, as loss of net property income would be offset by interest savings from loan repayment.

Upon completion of the transaction, CCT’s portfolio will comprise nine properties in Singapore’s CBD as well as one property in Frankfurt, Germany.

The Twenty Anson transaction is expected to be completed in 3Q2018.

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