Monday, May 23, 2016

CapitaLand Commercial Trust proposes to buy remainder 60% interest in CapitaGreen for $393 mil

CapitaLand Commercial Trust (CCT) has proposed to acquire the remainder 60% interest in Grade A office tower CapitaGreen for $393 million.

CCT currently owns a 40% interest in units in MSO Trust, a special purpose sub-trust that holds CapitaGreen.

CapitaLand owns 50% interest in MSO Trust, while Mitsubishi Estate Asia (MEA) owns the remaining 10%.

CCT intends to exercise a call option to acquire the respective stake from CapitaLand and MEA, subject to the approval of the their unitholders.

Upon completion of the proposed acquisition, CCT will own 100% of CapitaGreen through MSO Trust.

As at March 31, 2016, CapitaGreen's occupancy was 92.8% with leases to expire only from 2018 onwards.

CCT ended flat at $1.38 last Friday.

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