CapitaLand Commercial Trust Management Limited, as manager of CapitaLand Commercial Trust (“CCT”), has signed a lease agreement with WeWork Singapore Pte. Ltd. for the entire building at 21 Collyer Quay in Singapore.
The lease will commence in the second quarter of 2021, for a period of seven years. This will be WeWork’s largest workspace in Singapore.
21 Collyer Quay is presently leased to The Hongkong and Shanghai Banking Corporation Limited for one year and this lease will expire in April 2020.
CCT plans to capitalise on the transitional occupancy downtime during changeover of tenants to upgrade the building. The expected return on investment is approximately 9% on an estimated cost of S$45 million to upgrade the property. The works include enhancements to essential equipment, common and lettable areas and upgrades to achieve a Green Mark GoldPLUS rating.
“We are pleased that CCT achieved higher 2Q 2019 DPU of 2.20 cents. Portfolio occupancy as at 30 June 2019 remained high at 98.6%. The resilient performance can be attributed to the consistent execution of our value creation strategy,” said Kevin Chee, Chief Executive Officer of the Manager.
“As part of our proactive management of existing operational assets, we plan to commence refurbishment and asset repositioning of 21 Collyer Quay and Six Battery Road respectively in 2020,” he added.