CapitaLand Integrated Commercial Trust - Annual Report 2021

GROSS RENT 20 ACROSS ASIA PACIFIC CITIES Gross Rent in Major Cities in Asia Pacific Most markets in Asia Pacific, except Mumbai, Seoul and Tokyo saw a decrease in occupancy costs. In comparison, Singapore witnessed an increase of 3.8% 19 y-o-y. Amongst major Asia Pacific cities, Grade A gross rents in three markets ranked ahead of Singapore in 4Q 2021, and they are Hong Kong (Central), Beijing and Tokyo. The stable prime office gross Office Investment Market and Capital Values There have been a lot of activities in the office investment market in 2021, recording a total of S$5.4 billion, a 83.3% increase y-o-y. In 1Q 2021, OUE Commercial REIT divested a 50% stake in OUE Bayfront to Allianz Real Estate for S$633.8 million (S$3,170 psf), Certis Cisco Security Pte Ltd sold Certis Cisco Centre to Certis and Lendlease Property Trust for S$150.0 million (S$384 psf), and Sin Capital sold Finexis Building to PGIM for S$122.0 million (S$2,556 psf). Notable transactions in 2Q 2021 included the sale of a 30% stake in 9 Penang Road by Suntec REIT rents in Singapore amidst the pandemic reflect the prevailing tight vacancy, particularly in the Grade A office market, and strong demand from sectors such as technology and non-banking financial services. With its strategic location as a key gateway city within the Asia Pacific region while its rents remain competitive vis-à-vis those of other Asian gateway markets, Singapore will continue to be an attractive location for businesses. 19 Gross rents (or occupancy costs) in US$ are standardized for all markets in Net Floor Area (NFA) and value cannot be directly calculated by applying exchange rate only. 20 Standardised based on NFA and includes service charges. to Haiyi Holdings for S$295.5 million (S$2,468 psf), a 40% stake in Westgate Tower by Low Keng Huat to Sun Venture Homes for S$90.5 million (S$2,459 psf), and Maxwell House by URA to joint tenderers Chip Eng Seng Corp, Singhaiyi Investments and Chuan Investments for S$276.8 million (S$1,542 psf). Transaction volume in 4Q 2021 totalled S$1.9 billion, a 254.8% growth q-o-q. This was attributed to the transaction of a major deal, One George Street, which sold for S$1.3 billion (S$2,875 psf) to SG OGS Pte. Ltd., a 50:50 joint venture between JPMorgan and Nuveen Real Estate. *Rents quoted for China and India are on face rents basis, while the rest are effective rents. Source: CBRE APAC, 4Q 2021 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Hong Kong (Central) Beijing* Tokyo Singapore Shanghai* Delhi (CBD)* Seoul Mumbai (BKC)* Sydney Hong Kong (Kowloon East) Melbourne Delhi (Gurgaon)* Gross Rent (US$/psf/month) 14.3 10.2 8.6 5.6 8.0 5.3 7.2 5.0 3.3 6.0 4.5 2.2 Annual Report 2021 109 Independent Market Review