CapitaCommercial Trust

CapitaCommercial Trust: OSK DMG notes that CCT's next growth driver, CapitaGreen, offers 700,000 sq ft of Grade-A office space, scheduled to receive its TOP by 4QCY14. DMG expect CapitaGreen’s utility cost to be lower than that of other office towers, due to its unique architectural design. CapitaGreen is located in the heart of Singapore’s CBD, and is served by the Raffles Place and upcoming Telok Ayer MRT stations. In addition, CCT has indicated that tenants of CapitaGreen will have priority access to the GoldenShoe car park which currently features 1,053 parking lots. CapitaGreen is a joint development by CapitaLand, CCT and Mitsubishi Estate Asia. In this project, CCT owns 40% equity interest as well as a call option to acquire the remaining 60% within three years upon receiving its temporary occupancy permit (TOP). DMG expect the building, involving a total development cost of SGD1.4bn, to generate a forecast yield of 5.1%-6.3% when occupancy stabilizes. DMG maintains NEUTRAL, with TP of $1.70, as the contribution from CapitaGreen would only stream in by FY15.