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The property – which marks CapitaLand Commerical Trust’s second asset acquisition in Frankfurt – has a committed occupancy rate of 90 percent as at 30 June.
CapitaLand Commercial Trust (CCT) has agreed to acquire an effective 94.9 percent interest in the holding companies of freehold office property Main Airport Center (MAC) in Frankfurt, Germany from CapitaLand and Lum Chang Holdings.
The proposed transaction is based on an agreed property value of about $407.8 million (EUR265.0 million) for MAC on a 100 percent basis, which works out to about $387.1 million (EUR251.5 million) for the 94.9 percent interest.
Including acquisition-related expenses, CCT’s total acquisition outlay stands at around $390 million (EUR253.4 million).
Located near Frankfurt Airport and Frankfurt’s central business district, MAC is a multi-tenanted office building with a total net lettable area of around 60,200 sq m, about 53,900 sq m of which is high-specification for office space. The remaining 6,300 sq m ancillary space houses a meeting rooms, a conference hall and 1,510 car park lots.
The property – which marks CCT’s second asset acquisition in Frankfurt – has a committed occupancy rate of 90 percent as at 30 June.
In Singapore, CCT signed a seven-year lease, starting early Q2 2021, with co-working provider WeWork Singapore for the entire building at 21 Collyer Quay.
WeWork’s biggest workspace in Singapore, 21 Collyer Quay is currently leased to The Hongkong and Shanghai Banking Corporation Limited (HSBC) under a one-year extension, with the lease expiring on April 2020.
The trust’s manager plans to upgrade the building during changeover of tenants, with works including “enhancements to essential equipment, common and lettable areas and other upgrades to achieve a Green Mark GoldPLUS rating”.
CCT also plans to upgrade Six Battery Road following the expiry of Standard Chartered Bank’s lease in 2020.
To be done in phases from Q1 2020 to Q3 2021, the $35 million asset enhancement initiative will reposition the podium into a vibrant lifestyle attraction.
Meanwhile, CCT saw its distribution per unit increase 1.9 percent to 2.2 Singapore cents in Q2 2019 from 2.16 Singapore cents over the same period last year.
Gross revenue rose three percent to $101 million, while net property income climbed 0.8 percent to $78.4 million. Distributable income also increased 3.8 percent to $82.4 million.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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