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

Arthur Sim
414 words
5 September 2008
Business Times Singapore
English
(c) 2008 Singapore Press Holdings Limited

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.

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.