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3 Things You Should Know About CapitaCommercial Trust

Capitacommercial logoIf you’ve ever had a meeting in Tanjong Pagar’s Capital Tower, shopped in Raffles City Mall, had a drink at the top of the Swissotel The Stamford Hotel or browsed for bargains in Bugis Village, you’ll have experienced some of the portfolio managed by CapitaCommercial Trust (CCT) (SGX: C61U).

Another Real Estate Investment Trust (REIT) from the CapitaLand (SGX: C31) stable, CCT invests in good-quality, income-producing commercial properties that are often located close to Mass Rapid Transit (MRT) stations in Singapore.

Malaysia

The Trust also has interests in Malaysia through its 30% stake in Quill Capita Trust (QCT) a commercial REIT, which owns properties in Kuala Lumpur, Cyberjaya and Penang, as well as 7.4% of CapitaLand’s private real estate fund Malaysia Commercial Development Fund (MCDF).

CapitaCommercial Trust bears the distinction of being Singapore’s largest commercial REIT listed by market capitalisation and is managed by CapitaCommercial Trust Management Limited (CCTML). The Trust has around 3million sq. ft. of net lettable area in Singapore, valued at about S$7b as well as more than 3,000 parking lots, as of December 2012.

But did you know…

  1. When Raffles City was opened in 1986 it was the largest development project in Singapore and transformed the city’s skyline.
  2. The mall also appears in the Guinness Book of Records for the “World’s Longest Dancing Dragon” – at 136m long it took 30 people to complete and 49 people to bring it to life.
  3. The Bugis area used to have a large canal running through it where the Bugis people, from Indonesia’s South Sulawesi province would sail, moor-up and trade with Singaporean merchants. Later, during the first half of the 20th Century, there was even a tram service running from Bugis Street along North Bridge Road.

Future projects include its CapitaGreen office tower – a joint venture between CCT, parent company CapitaLand and Mitsubishi Estate Asia due to be completed by the fourth quarter of 2014.

Investors in CCT are, of course, part owners of the properties the REIT owns. Shareholders will no doubt be pleased to learn CCT’s properties can boast a committed occupancy by its tenants (including companies such as RC Hotels, Standard Chartered and JPMorgan Chase Banks) of more than 97%.

The trust could also see future growth as a result of the enhancements it is making to its Six Battery Road and Raffles City Tower properties.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Alison Hunt doesn’t own shares in any companies mentioned.