CapitaLand Integrated Commercial Trust (CICT)

[cyclone]

Lease at 21 Collyer Quay

CapitaLand Commercial Trust ("CCT") announced that it has signed a one-year lease extension for the whole of 21 Collyer Quay with The Hongkong and Shanghai Banking Corporation Limited ("HSBC") today. The total rent payable by HSBC for the extended term commencing 30 April 2019 will be S$27.7 million.

21 Collyer Quay is a 200,000 square feet office building with a leasehold estate expiring on 18 December 2849 and a valuation of S$461.0 million as at 30 June 2018. HSBC is leasing the entire building currently and is one of CCT’s top ten tenants, contributing approximately 4% to CCT’s monthly gross rental income as at 30 June 2018.

In line with CCT’s proactive asset management strategy, the Manager is evaluating options for the property after April 2020 which include refurbishment and re-letting, redevelopment and divestment. CCT will share more information about its plans for 21 Collyer Quay when they are finalised.

[cyclone]

WeWork to lease 21-storey Singapore office tower after HSBC moves out

Aradhana Aravindan
JULY 17, 2019 / 8:24 AM

SINGAPORE (Reuters) - WeWork Cos will lease a 21-storey building in Singapore’s prime financial district that is currently leased to HSBC, marking an expansion by the U.S. co-working space provider in Asia.

WeWork, backed by Japan’s SoftBank Group (9984.T), will lease the building from CapitaLand Commercial Trust (CCT) (CACT.SI), the Singaporean office landlord said in a statement.

The tower, 21 Collyer Quay, will be WeWork’s biggest property in the Southeast Asian nation and has a net lettable area of about 200,000 square feet.

CCT said its lease deal with Hongkong and Shanghai Banking Corp Ltd, a unit of HSBC Holdings Plc (HSBA.L), will end in April 2020 but did not give financial details of the new lease.

Co-working spaces have become popular among startups because these give them the flexibility of short-term leases in well-decorated spaces and keep overheads low. Increasingly, larger companies are also using co-working firms to manage their offices.

In Singapore, the flexible workspace footprint has more than tripled since 2015 and now accounts for some 4% of the office space in the central business district, according to real estate consultancy Colliers.

WeWork may get signage rights for the building, which would boost its branding and visibility in the central business district, said Christine Li, head of Singapore and Southeast Asia research at property services firm Cushman and Wakefield.

“It’s a very good catch for WeWork,” said Li, because typically only a few floors are available in the business district due to low vacancy.

The lease will start in the second quarter of 2020 for seven years, CCT said. WeWork will occupy 20 floors of the building, the U.S. firm said in a separate statement, but did not provide details about the one other floor.

HSBC Singapore said last year that it would relocate its head office to Marina Bay Financial Centre, within the central business district.

Rents for grade A buildings in Singapore’s central business district surged 12.7% last year, Cushman and Wakefield’s Li said.

More details in https://www.reuters.com/article/us-capit...SKCN1UC03A

[RachelProp]

SINGAPORE (July 17): CapitaLand Commercial Trust (CCT) is acquiring a 94.9% stake in Main Airport Center (MAC) in Frankfurt, Germany, for €251.5 million ($387.1 million).
The acquisition marks CCT’s second asset acquisition in Frankfurt and increase CCT’s overseas exposure from 5% to 8% of its portfolio property value.
Located close to Frankfurt Airport and a 20-minute drive to Frankfurt’s Central Business District, MAC is a freehold multi-tenanted office building with a total net lettable area (NLA) of 60,200 sqm.

Read more on https://www.edgeprop.sg/property-news/cct-acquires-949-stake-frankfurt-office-387-mil

[karlmarx]

SINGAPORE'S malls are showing some resilience to the global hollowing out of physical retail by online shopping. The demographics of the smartphone generation are still against them, though.


Suburban middle-class shopping centres put up a strong show in CapitaLand Mall Trust's quarterly earnings on Tuesday.

https://www.businesstimes.com.sg/real-es...-mall-rats

...

It should be clear by now that the supply of retail malls is more than the demand for them. There are only so much shoppers to go around. And it seems that CMT malls are the best in terms of attracting shoppers, and hence, tenants. While CMT is able to maintain or increase rental, other retail landlords are lowering them. Second Chance's retail units are probably a good representation of the performance of 2nd/3rd tier malls.

Apart from their good location, I will say CMT malls are also well-managed. Or at least, there is an active effort to improve performance.

The threat of online shopping has come, and it is the poorly-managed malls -- those that are more concerned with perhaps, collecting fees from tenants -- that has become their fodder. 

Well-managed and located malls with an ability to provide value-add to shoppers will continue to thrive for a long time.

[cyclone]

CapitaLand to create Asia-Pacific’s third largest REIT with US$6.2 billion merger of Singapore office and shopping mall trusts
* CapitaLand Mall Trust and CapitaLand Commercial Trust to merge their assets in cash and shares transaction worth S$8.3 billion
* At least four other combinations have taken place in Singapore’s REIT industry over the past 12 months

SCMP Reporters
Published: 11:41am, 22 Jan, 2020
Updated: 12:02pm, 22 Jan, 2020

CapitaLand Mall Trust and CapitaLand Commercial Trust plan to merge their holdings in shopping malls and offices in Singapore and Germany to create the third largest real estate investment trust by market value in Asia-Pacific.

CapitaLand Mall Trust will buy all CapitaLand Commercial Trust units by stock, cash and fees worth S$8.3 billion (US$6.2 billion), according to a Singapore stock exchange filing on Wednesday.

The combination will put 15 shopping malls and 10 offices, mostly in the Southeast Asian city, under one roof with a combined asset value of S$22.9 billion and average occupancy rate of 99 per cent, the filing shows. Both trusts are controlled by Singapore’s biggest landlord CapitaLand Limited, a unit of state investment company Temasek Holdings.

The combined unit had a market value of S$16.8 billion based on their stock prices on January 21. This ranks the merger behind Hong Kong-listed Link Reit and Australian group Scentre Group, with S$30.2 billion and S$19.1 billion in market value, respectively, according to the filing.

The combination is at least the fifth tie-up among Singapore-listed REITs over the past 12 months and ranks as one of the top 10 mergers and acquisitions of all time in the city state. Benefits include the ability to consolidate management expertise and build a bigger war chest for acquisitions.

Combined, the entity is expected to be the largest REIT in Singapore by market value and total portfolio property value, according to Wednesday’s statement. It will have the ability to undertake up to S$4.6 billion of overseas acquisitions in developed countries, while remaining predominantly Singapore focused.

“It’s a trend where we see REITs pushing for bigger size and diversification, both in terms of geography and asset type,” said Joel Ng, an analyst at KGI Securities (Singapore). “Given the limited opportunities in Singapore for retail and office acquisitions, the combined entity will allow for more such integrated developments as it expands overseas.”

The enlarged scale of the combined portfolio should allow the new group to compete better in Singapore and overseas in the retail and office sectors. Higher trading liquidity and a potential for positive re-rating could also bring a more competitive cost of capital.

In other industry consolidations, CapitaLand Limited struck a S$6 billion deal with Temasek to combine Ascendas Pte and Singbridge Pte in January last year.

More details in https://www.scmp.com/business/article/30...ion-merger

See also :
1. https://links.sgx.com/FileOpen/Annc_CMT_...eID=594065
2. https://links.sgx.com/FileOpen/News_Rele...eID=594066
3. https://links.sgx.com/FileOpen/Presentat...eID=594067
4. https://links.sgx.com/FileOpen/Presentat...eID=594068

[lonewolf]

The proposed CMT-CCT merger has been put on hold. I guess that is the sensible thing to do given the current situation.

SOURCE: UPDATE ON THE PROPOSED MERGER

[Duskerdawn]

The CMT-CCT has since been completed.

Since the run-up in price to approximately $2~, I personally would be holding CapitaLand Integrated Commercial Trust. The basis is that both the retail and commercial reit will continue to recover gradually. Hence, its good to hold on for the quarterly dividends while waiting for the full recovery.

Do find my analysis here in my blog below.

https://duskerdawninvestingjourney.wordp...rust-c38u/

[EnSabahNur]

CICT's Gallileo property, the English Theatre Frankfurt and Commerzbank

CapitaLand Integrated Commercial Trust's (CICT) property in Frankfurt (Germany), Gallileo, is at the centre of a kerfuffle between a theater company, German government ministries and Commerzbank.

[weijian]

CICT's Gallileo property, the English Theatre Frankfurt and Commerzbank

CapitaLand Integrated Commercial Trust's (CICT) property in Frankfurt (Germany), Gallileo, is at the centre of a kerfuffle between a theater company, German government ministries and Commerzbank.

There seems to be 3 stakeholders - City Gov/the theater (the "squatter"), the tenant and the owner. Only one of the 3 stakeholders is not German....hmmm

[EnSabahNur]

The reporter provided more context in the comments to the article. He cites someone knowledgeable about the situation.

It seems that the theatre is willing and able to pay rent. However, the problem is where do they need to site their playhouse? If they move out, should Capitaland commit to providing space for them in the refurbished building?
They referred this to the city govt for several years and apparently the city govt says they should remain where they are.

So there are 4 stakeholders, the city gov and the theatre are seperate.

I am not sure if the theatre should be called a squatter though, because the city seems to think they should remain where they are.

He further explains that the problem could be due to some arcane oversight when the deal for them to move into the building was struck. This deal wasn't entered into the land registry, or something like that.

So the impression I get is that Capitaland is now dragged into this although the agreement was struck before they bought the building.

It is... a little messy.

(vested)