CCT makes first foray into Europe with acquisition of 94.9% stake in €356.0 million freehold Grade A property in Frankfurt
Accretive acquisition will increase portfolio value and provide geographical diversification for CCT by leveraging CapitaLand Group’s platform in Germany
Singapore, 17 May 2018 – Singapore’s largest commercial REIT by market capitalisation, CapitaLand Commercial Trust (CCT or Trust), is expanding its footprint beyond Asia for the first time. With CapitaLand Limited, CCT is acquiring a freehold Grade A commercial property, known as
The agreed property value of
Mr Kevin Chee, Chief Executive Officer of the Manager of CCT, said: “CCT has grown to become the largest office landlord in Singapore’s CBD by
Mr Chee added: “The
Mr Gerald Yong, Deputy Chief Investment Officer of CapitaLand Limited and Head of CapitaLand International, said: “This is CapitaLand’s second office acquisition in Germany in less than six months following our acquisition of the Main Airport Center in Frankfurt last December. Leveraging the Group’s 15 years of experience in Germany, the acquisition of
The funding of CCT’s total acquisition cost of €342.7 million or approximately S$548.3 million will be via a fully-underwritten private placement of approximately S$208.8 million[3] (38.1%) of net proceeds and bank borrowings of €212.2 million (61.9%). With the proposed private placement, the Manager intends to declare an advanced distribution of income for the period from 1 January 2018 to the day immediately prior to the date on which the new placement units are issued. The estimated distribution per CCT unit under the advanced distribution will be approximately 3.49 cents. The actual amount of advanced distribution (which may differ from the estimate above) will be made by the Manager in due course.
Since entering Europe in 2000, CapitaLand has been growing its presence in the continent. Apart from office, CapitaLand has a network of more than 5,500 serviced residence units and hotel rooms across 20 cities in seven European countries managed by its wholly owned serviced residence arm, The Ascott Limited. To deepen its presence in the continent, CapitaLand has set up investment and asset management offices in key European cities of Amsterdam, Frankfurt, London and Paris. In Europe, CapitaLand has a staff strength of more than 900, including professionals with legal, finance and technical expertise.
About the Gallileo property
The Gallileo property is strategically located in Frankfurt’s prime CBD, known as the Banking District. It is in close proximity to the German Central Bank, European Central Bank office towers, and the Frankfurt Opera House. The property also has easy access to a U-Bahn station at Willy-Brandt Platz, the Frankfurt Main Railway Station, Frankfurt Airport and Messe Frankfurt, one of the world’s largest trade fair venues.
Description |
A 38-storey Grade A commercial building with ancillary retail and a 4-storey heritage building for office use |
Address |
Gallusanlage 7/ Neckarstrasse 5, 60329 Frankfurt am Main |
Title |
Freehold |
Date of Completion |
2003 |
Net Lettable Area |
436,175 sq ft (40,522 sqm) |
Typical Floor Plate |
10,549 sq ft (980 sqm) |
Occupancy |
100%; Commerzbank AG [4] anchors approximately 98% |
Weight Average Lease Expiry (WALE) |
10.6 years[4] |
Certification |
LEED Platinum |
Net Property Income Yield |
c. 4.0% |
1 Based on Gallileo's FY 2017 net property income on 100% occupancy and valuation as at 31 March 2018.
2 The assumptions for the pro forma financial effects of the
3 Based on 130 million new CCT units to be issued and an issue price of S$1.631, which is the minimum of the issue price range between S$1.631 and S$1.676 per new unit.
4 Commerzbank AG’s lease expires in 2029 and the rent is adjusted based on an inflation index every two years. However, Commerzbank AG has an option to terminate the lease in 2024 with 24 months’ notice.