[SINGAPORE] The manager of CapitaLand Integrated Commercial Trust (CICT) on Friday (May 2) announced the sale of its stake in the serviced residence component of CapitaSpring.
CICT owns a 45 per cent interest in Glory SR Trust, which holds the serviced residence component of the integrated development. CICT’s manager did not disclose the purchasers, but described them as an “unrelated third party”.
Located in the Central Business District, CapitaSpring comprises 299 serviced residence units as well as office and retail spaces.
The agreed property value of the serviced residence component between the buyers and sellers is S$280 million, making CICT’s stake worth S$126 million. However, the trust’s share of the sale consideration is estimated to be S$37.8 million, after factoring in the repayment of existing unitholder loans owed by Glory SR Trust, as well as completion adjustments.
“We have divested the serviced residence, a non-core asset, at a premium to its last valuation,” said Tan Choon Siang, CEO of CICT’s manager.
The transaction is expected to conclude in the second quarter of this year.
The exit yield from the sale is about 3.6 per cent. The divestment is not expected to have any material impact on CICT’s net asset value per unit or distribution per unit for FY2025.
Units of CICT closed flat at S$2.15 on Friday.
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