CapitaCommercial Trust (CCT) is selling the StarHub Centre to Frasers Centrepoint for S$380 million in cash.
StarHub Centre is a 10-storey non-Grade A office building with retail space next to FCL’s Centrepoint mall.
It currently has a committed occupancy of 68.2 per cent and some 280,000 square feet of lettable space.
The current lease for the site expires in January 2095.
CCT disclosed that it has received in-principle approval from the Singapore Land Authority to top up the lease to 99 years, subject to the payment of a differential premium.
Earlier this year, the Urban Redevelopment Authority gave its approval for the building to be converted into a residential block.
But 20 per cent to 40 per cent of the gross floor area must be retained for commercial use.
CCT expects to make approximately S$375.8 million from the deal after transaction costs.
StarHub Centre was last valued at S$266.7 million by CB Richard Ellis in June this year.
Frasers Centrepoint CEO Lim Ee Seng said that with its strategic location in the heart of Orchard Road, the StarHub Centre has great redevelopment potential for a high-end mixed residential and retail development.
Source: Channel News Asia, 16 Jul 2010