What the sale of OGS means for CapitaLand Commercial Trust

It could translate into a 3.2% property yield.

CapitaLand Commercial Trust (CCT) recently announced that it has sold 50% of One George St (OGS) to insurer FWD Group.

According to CIMB, the deal is based on an agreed value of OGS of $1.18b or $2,650psf, which is 16.7% higher than its past valuation. This translates into an annualised 3.2% net property yield, pushing CCT to expect and recognise a gain of $84.6m.

"Sale proceeds are expected to be used for either repaying borrowings or to fund growth opportunities. Assuming repayment of loans, its gearing is likely to decline to 33.6% from the present 38.1% as at Dec 16," CIMB said.

It added, "We see this capital-recycling move as positive for the trust. The increased debt headroom as well as the cash proceeds will increase the group’s financial flexibility, including funding growth opportunities, such as the potential redevelopment of Golden Shoe Carpark. Assuming a post-sale gearing target of 40%, CCT has potential debt headroom of c.$850m."

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia