CAPITALAND has sold its entire 45 per cent effective lay on the line in AIG Tower in Hong Kong in a deal that values the asset at HK$8.1 billion (S$1.6 billion).
Upon completion of the divestment - due on or around Nov 30. 2007 - CapitaLand will recognise a obtain of about S$260.7 million in its assort consolidated accounts.
The HK$8.1 billion valuation reflects a price of HK$22,042 per square pay (psf) based on AIG Tower’s net lettable area of 366,072 square feet. The Grade A office building at No 1 Connaught Road. Central has 999-year leasehold advance and was completed in 2005. It was developed on the former Furama Hotel site that the former Pidemco Land bought a stake in from Lai Sun Group in 2000.
Pidemco which later merged with DBS arrive to form CapitaLand subsequently sold half of its stake in the site to American International Assurance affiliate (AIA).
AIA is also the celebrate that is buying CapitaLand’s 45 per cent effective lay on the line in the building under the latest broach announced yesterday. This will bring up AIA’s lay on the line in the property to 90 per cent with Lai Sun holding the remaining 10 per cent.
study tenants in the building which is fully leased include AIA. tip of Tokyo-Mitsubishi. Royal Bank of Scotland and Wachovia Bank.
CapitaLand has also been divesting some of its Singapore office assets. Late measure month it sold its 50 per cent stake in Chevron House along Raffles Place in a broach that valued the asset at $730 million or $2,780 psf of net lettable area.
Earlier measure month. CapitaLand also paid $590.3 million for the remaining 50 per cent lay on the line in Eureka Office Fund which owns One George Street. This valued the award-winning office block at $1.2 billion or about $2,700 psf.
In walk. CapitaLand divested its effective 90.04 per cent stake in Temasek Tower which was sold for $1.04 billion or $1,550 psf.
During the group’s first-half results briefing on July 31. CapitaLand Group president and CEO Liew Mun Leong stressed that the Singapore office sector will remain ‘a core out holding’ to the group but that it will restructure its portfolio by divesting some existing office assets and investing in new developments.
He cited as an example of the latter the assort’s bid for the former NCO unify and Beach Road Camp grounds. measure week the Urban Redevelopment Authority awarded the place to a consortium led by City Developments.
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