S$580 Million CMBS For CCT More Than Four Times Oversubscribed
Strong investor demand seen in Europe and Asia for all tranches
Singapore, 16 March 2004 - CapitaLand Limited ("CapitaLand") today announced that its recently launched US$340.6 million (S$580 million equivalent) rated Commercial Mortgage Backed Securities ("CMBS") issue has successfully closed with an over-subscription rate of more than four times. The issue, backed by CapitaCommercial Trust's ("CCT") initial portfolio of seven properties, received strong demand from a broad range of investors in Europe and Asia. The manager for CCT is CapitaCommercial Trust Management Limited ("CCTML").
Said Mr Liew Mun Leong, President & CEO of CapitaLand and Deputy Chairman of CCTML, "This fund-raising is a significant milestone in the creation of CCT, Singapore's first proposed commercial real estate investment trust ("REIT"). We are gratified that the international investment community has endorsed this CMBS issue. With the right financial structure and a good understanding of investor needs, we were able to tap the global capital markets on extremely competitive terms. We also capitalised on the excellent interest rate window which allowed us to achieve a very low blended rate to the benefit of CCT. "
| Class | Indicative Size | Rating |
| A1 | US$ 90 million | AAA/Aaa/AAA |
| A2 | US$ 147 million | AAA/Aaa/AAA |
| A3 | US$ 47 million | AA/Aa2/AA |
| A4 | US$ 56.6 million | A/A2/A |
| Total US$340.6 million or S$580 million equivalent | ||
Background to CCT
On 6 February 2004, CapitaLand had announced the proposed creation of CCT and the proposed distribution of approximately 60% of CCT units to CapitaLand's shareholders via a capital reduction exercise and a pro-rated distribution in specie. In conjunction with this proposal, CapitaLand intends to list the CCT units on the SGX-ST by way of introduction.
The creation of CCT, Singapore's first commercial real estate investment trust (or REIT), is subject to approvals from CapitaLand's shareholders and other regulatory authorities. CapitaLand Financial Limited, the real estate financial services arm of CapitaLand, together with DBS Bank and JPMorgan, are the advisors for the CCT transaction.
Issued by CapitaLand Limited
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