CapitaCommercial Trust (CCT) recently (Jan 19, 2010) had agreed to let off Robinson Point to AEW Asia, a private fund, for $203.95 million of its NLA. A price 11.4% above valuation did on Dec 2009, and close to 70% above their acquisition cost. CCT must have performed their due diligent before decided to let their current home off. Possible reasons behind the sale includes the building has reaches its optimal state, to rise current cash flow position for possible potential acquisition or current properties market may have reaches its optimal price. It is obvious that with this sale of Robinson Point, CCT is now in a much better position to purchase other office building with more potential. Starhub Centre is the next building in CCT’s portfolio that will be re-evaluated and redeveloped to improve the usability area. “If it is financially feasible, CCT may sell the site with the redevelopment potential to a residential developer” said Lynette Leong.     

 

One thing for sure, everyone is watching the development of Marina Bay Financial Center (MBFC), which is being developed by Keppel Land, Hong Kong Land and Cheung Kong Holdings. Phase 1 of the project is scheduled to receive temporary occupation permit (TOP) in March, while Phase 2 could receive TOP in June 2010. MBFC is seeing strong take up. Among CCT’s tenants that have taken up space at MBFC is Nomura, which is said to have leased 103,000 sq ft of space at the new development. Another tenant of CCT that has taken up space in MBFC is Standard Chartered Bank. CCT is already feeling the pressure.  

 

Occupancy in CCT’s Grade A offices actually increased to 98.7% as at Dec 31, 2009, up from 97.9% as at Sept 30, 2009, while occupancy rates at offices in general were weakening.

 

Strategically, the more proactive management of CCT’s assets puts it in strong position to take advantage of acquisition opportunities. As of now, analysts estimate that distributable income at CCT is likely to decline by 5% to $188.7 million, before rebounding slightly to $207 million in 2011.   

 

CCT currently has 11 properties: Capital Tower,

The estimated DPU for the financial period 1 July 2009 to 31 December 2009 (2H 2009) is 3.73 cents

"

respectively. The Trust’s net asset value (NAV), after adjusting for the 2H 2009 distributable income to

unitholders, is S$1.37 per unit as at 31 December 2009.– CapitaCommercial Trust Management Limited, the Manager of1. For the1. CCT’s2.3 and S$6.1 billion

A media cum analysts' briefing will be held at 10.00 am on the same day and a

"LIVE" webcast will be available for viewing at www.cct.com.sg.