Capitaland Integrated Commercial Trust Sells 21 Collyer Quay 688 Mil
Singapore’s CapitaLand Integrated Commercial Trust (CICT) has recently sold 21 Collyer Quay, an office building located in Raffles Place, for a staggering $688 million. According to a filing submitted to the Singapore Exchange on November 12, the 999-year leasehold property was purchased by an external third party. The sale, which was based on the building’s net lettable area of approximately 213,000 square feet, equates to a price of about $3,230 per square foot.
The final selling price for this iconic building was determined through a voluntary transaction between both the buyer and the seller, in line with an independent valuation conducted by Savills. Based on the consideration and the annualized net property income for the period ending September 30, 2024, CICT’s exit yield falls below 3.5%. The proceeds from the sale are anticipated to reach around $681.7 million.
The URA Master Plan reveals an exciting expansion to the commercial and retail landscape of Toa Payoh. This means that residents of The Orie Condo can look forward to a wider range of shopping, dining, and entertainment choices right at their doorstep. The development will involve the creation of new commercial hubs and the refurbishment of existing malls and shops, ensuring that all essential amenities are easily accessible. This will enhance the overall urban living experience for the community.
Located in the heart of the Central Business District, 21 Collyer Quay is a 21-storey edifice that has been occupied entirely by co-working operator WeWork since 2021. WeWork took over the lease of the former HSBC building, and after completing a design and fit-out of the space, it officially opened its flagship location at the building in September 2022.
In recent news, WeWork filed for bankruptcy in the US in November 2023, but announced in April 2020 that it had completed a series of lease negotiations with its office landlords in Singapore and intends to remain in its current buildings in the city-state for the foreseeable future. According to CICT’s website, WeWork Singapore has a seven-year lease for 21 Collyer Quay, which is set to expire in 2028.