CCT – SGX
PROPOSED ACQUISITION OF WILKIE EDGE – OPTION EXERCISED BY THE ASCOTT GROUP TO LEASE THE SERVICED APARTMENTS
1. On 20 July 2007, CapitaCommercial Trust Management Limited (the “Manager”) announced on behalf of CapitaCommercial Trust (“CCT”) the proposed acquisition by CCT’s trustee, HSBC Institutional Trust Services (Singapore) Limited (the “Trustee”),of a mixed development known as “Wilkie Edge” at No. 8 Wilkie Road Singapore 228095 (the “Property”). The development is situated on Land Lot No. 230C of Town Subdivision 19. The vendor of the Property is CapitaLand Selegie Private Limited (“CSPL”). Completion of the proposed acquisition is conditional upon, inter alia, approval by unitholders of CCT at an extraordinary general meeting to be convened by 30 November 2007 or such other date as CSPL and the Trustee may agree. Such approval is required under the Listing Manual and under the Property Funds Guidelines.
2. The Manager is now pleased to announce that CSPL has exercised the option to give notice (the “Vendor Nomination Notice”) to the Trustee to enter into an agreement (the “Agreement for Lease”) to facilitate the grant of a lease (the “Lease”) of the serviced apartment component of the Property (the “Serviced Apartments”) in favour of its nominee, Ascott Scotts Pte Ltd (the “Nominee”). The Nominee is an indirect wholly-owned subsidiary of The Ascott Group Limited.
3. Following the Vendor Nomination Notice, CSPL, the Trustee and the Nominee have entered into the Agreement for Lease.
4. The Agreement for Lease is for a leasehold term commencing on the earlier of the date on which the Nominee takes possession of the Serviced Apartments or the date falling 14 days after notice to take possession is issued on the Nominee, and ending on 19 February 2105.
5. The lease consideration of S$79,300,000 (the “Lease Consideration”) for the Serviced Apartments was arrived at on a willing-buyer willing-seller basis.
6. For the proposed acquisition of the Property, the Manager has commissioned an independent property valuer, CB Richard Ellis (Pte) Ltd (“CBRE”) and the Trustee has commissioned an independent property valuer, Jones Lang Lasalle Property Consultants Pte Ltd (“JLL”) to value the Property (including the Serviced Apartments). CBRE certified on 16 July 2007 that the open market value of the Property and the Serviced Apartments is S$262,000,000 and S$79,300,000 respectively. JLL certified on 17 July 2007 that the open market value of the Property and the Serviced Apartments is S$260,500,000 and S$80,500,000 respectively.
7. The obligation of the Trustee to grant, and the obligation of the Nominee to take, the Lease of the Serviced Apartments is conditional upon, inter alia, the following conditions being fulfilled by 30 November 2007 (or such other date as the parties may agree):
7.1 (where required by the Singapore Exchange Securities Trading Limited) the obtaining of approval by the shareholders of The Ascott Group Limited at an extraordinary general meeting for (i) the Nominee’s entry into the Agreement for Lease and (ii) the Nominee’s acceptance of the Lease, on the terms and subject to the conditions set forth in the Agreement for Lease and the Lease, respectively; and
7.2 the obtaining by the Trustee of the approval of the President of the Republic of Singapore (as head lessor of the Property) for the lease of the Serviced Apartments to the Nominee for the Term of the Lease.
8. Upon the execution of the Agreement for Lease, the Trustee’s purchase consideration for the Property is reduced by the Lease Consideration from S$262,000,000 to S$182,700,000 (the “Revised Purchase Consideration”). If the Agreement for Lease is subsequently annulled or terminated, or deemed annulled or terminated pursuant to the provisions thereof and the Trustee ceases to be obliged to enter into the Lease, the Trustee shall, in addition to the Revised Purchase Consideration, pay to CSPL an amount equal to the Lease Consideration.
9. A copy of the Agreement for Lease is available for inspection during normal business hours at the registered office of the Manager at 39 Robinson Road, #18-01 Robinson Point, Singapore 068911, for a period of 3 months commencing from the date of this Announcement.