CCT signs up leases for 77,900 sq ft in 2 office towers

Source : Business Times - 5 Sep 2008

CAPITACOMMERCIAL Trust (CCT) says 77,900 sq ft of office space at Capital Tower and One George Street has been renewed or newly committed for between two and three years.

Three companies account for the leases - JPMorgan Chase & Co, BHP Billiton and Shinhan Bank.

CCT did not reveal the rents.

‘Given the Grade A quality of Capital Tower (next) and One George Street (above), they are in line with rates achieved at comparable Grade A office buildings in the respective micro-markets.’- CCT spokesman

But a spokesman said: ‘Given the Grade A quality of Capital Tower and One George Street, they are in line with rates achieved at comparable Grade A office buildings - between $16 to $20 per sq ft per month (psf pm) - in the respective micro-markets.’

In July, CCT said it expected 4 per cent of leases at Capital Tower to expire in 2008.

Separately, CCT said yesterday that CapitaLand, which has a 30.92 per cent stake in the Reit, will lease 1,313.2 sq ft of office space at Capital Tower for three years for a total sum of $449,125.92.

CCT described the space as an ‘unconventional office unit located on the ninth storey’.

It said the terms of the lease were reviewed by CB Richard Ellis, which confirmed the rent is at market level.

Based on the total rent, the monthly rent works out to about $9.50 psf pm.

JPMorgan Chase & Co is one of CCT’s top-10 blue chip tenants, contributing about 3.3 per cent of the trust’s gross rental income. It will now occupy an extra one-and-a-half floors at Capital Tower.

BHP Billiton, which has several offices in the CBD, will renew its lease at Capital Tower.

This follows a recent report last month that said BHP Billiton is leasing about 150,000 sq ft at Tower 2 of the upcoming Marina Bay Financial Centre, slated for completion in the second quarter of 2010.

At One George Street, new tenant Shinhan Bank has taken space to grow its business footprint in Singapore.

Lynette Leong, CEO of CCT’s manager said: ‘The lease commitments are definitely encouraging news.’

She said she is confident the trust will delivering its forecast distribution per unit of 10.61 cents and 12.34 cents for the financial years ending 2008 and 2009 respectively.

Following the completion of the acquisition of One George Street on July 11, CCT’s asset size is close to $7 billion, which is ahead of the $6 billion target it set itself by 2009.