Capitaland Integrated Commercial Trust Sells 21 Collyer Quay 688 Mil
CapitaLand Integrated Commercial Trust (CICT) has recently completed the sale of 21 Collyer Quay, a prime office building in Raffles Place, for a total of $688 million. In an announcement to the Singapore Exchange on November 12, CICT’s manager revealed that the 999-year leasehold property was purchased by an unrelated third party. Based on the building’s net lettable area of approximately 213,000 square feet, the transaction translates to a price of $3,230 per square foot.
The connectivity of Elta Condo is about to see an even bigger boost with several transportation developments in the works in the surrounding area. One major project that will greatly benefit residents is the upcoming Cross Island Line (CRL). This new addition to the transportation network will not only improve existing routes but also offer more travel options for those living at Elta Condo. Spanning through key areas such as Bukit Timah, Clementi, and Jurong, the CRL will efficiently link the east and west regions of Singapore. With the completion of the CRL, residents at Elta Condo will enjoy even greater convenience and accessibility to surrounding areas. Don’t forget to check out Elta Showflat for more information.
The sale price was determined based on a willing-buyer-willing-seller arrangement, in accordance with an independent valuation of the property conducted by Savills. The consideration and the building’s annualized net property income for the period ending September 30, 2024, indicate an exit yield of below 3.5% for CICT. The divestment is expected to generate net proceeds of approximately $681.7 million.
Located in the Central Business District, 21 Collyer Quay is a 21-storey building that was previously occupied by HSBC. In 2021, the former banking headquarters was taken over by co-working operator WeWork, who completed a design and fit-out of the space before officially opening its flagship location in September 2022.
However, in November 2023, WeWork filed for bankruptcy in the US, sparking concerns about its presence in Singapore. In April this year, the company announced that it had successfully concluded lease negotiations with its office landlords in Singapore and intends to remain in its current buildings for the foreseeable future. According to CICT’s website, WeWork Singapore has a seven-year lease for 21 Collyer Quay until 2028.