SINGAPORE: CapitaLand Commercial Trust Management Limited (CCTML), the Manager of CapitaLand Commercial Trust (CCT), announced that CCT has entered into an agreement to acquire an effective 94.9% interest in the holding companies of Main Airport Center (MAC)–a freehold office property in Frankfurt, Germany–from CapitaLand Limited and Lum Chang Holdings Limited.
CapitaLand will continue to hold a 5.1% interest in the holding companies post-transaction. This accretive acquisition will mark CCT’s second asset acquisition in Frankfurt1and increase CCT’s overseas exposure from 5% to 8% of its portfolio property value.
The proposed transaction is based on an agreed property value of €265.0 million (about S$407.8million) for MAC on a 100% basis, which translates to €251.5 million (about S$387.1 million) for the 94.9% interest.
The acquisition is conditional upon CCT’s Unit holders’ approval, which is expected to be obtained in September 2019. Strategically located close to Frankfurt Airport and a mere 20-minute drive to Frankfurt’s Central Business District, MAC is a multi-tenanted office building with a total net lettable area (NLA) of approximately 60,200square metres (sqm).
Soo Kok Leng, Chairman of CCTML, said: “CCT made its maiden entry into Frankfurt last year with Gallileo, adding a new market that complements its established platform in Singapore where it is the largest office landlord in Central Business District by net lettable area. The proposed acquisition of MAC represents a continuation of our value creation efforts to grow CCT’s portfolio with quality assets that have long-term growth potential and create depth in markets where we are present. It increases CCT’s overall portfolio value and supports the geographical and income diversification of its portfolio mix.”
“Post-acquisition, the proportion of Singapore assets in CCT’s portfolio will stand at 92%, while overseas exposure will rise to 8% from 5% previously. This is aligned with our guidance of having up to 20% of CCT’s portfolio property value overseas in our pursuit for sustainedgrowth.CCT remains predominantly Singapore-focused. Following the completion of CapitaLand’s merger with Ascendas-Singbridge, in addition to CapitaSpring, CCT can look forward to a larger pipeline of projects in Singapore from its sponsor.”
Post-acquisition, CCT’s portfolio property value will increase from S$10.7billion to S$11.1 billion.