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CapitaCommercial Trust (CCT) Made Its Debut Today On The Singapore Exchange

BackMay 11, 2004

Singapore, 11 May 2004 - CapitaCommercial Trust (CCT), Singapore's first commercial real estate investment trust (REIT), began trading on the Singapore Exchange Securities Trading Limited (SGX-ST) from 9.00am today. By the end of the first day of trading, total volume traded was 3.17 million units. The closing price was S$1.18, which implies a trading distribution yield of 4.8 percent based on the annualised forecast distribution of 5.68 cents per unit.

 


Concurrently, CapitaLand shares traded "ex" distribution today and closed 26 cents lower S$1.35 as compared to yesterday's closing price of S$1.61 "cum" distribution. The difference is approximately one-fifth of the CCT price, since each CapitaLand shareholder getting one CCT unit for every five shares held as at the books closure date. The shares were traded amidst a volatile equity market environment. The STI Index & SES Properties Index slid by 2.2% and 6.4% respectively in the last two days.

 


Said Mr Liew Mun Leong, Deputy Chairman of CapitaCommercial Trust Management Limited and President & CEO of CapitaLand Limited, "We are very pleased with the successful debut of CCT today. CCT is an attractive investment that provides individuals with stable tax-exempt distributions backed by a quality portfolio of prime commercial assets in the CBD. The Group has now successfully launched two REITs as investment products the Singapore equities market. Based on the success of the other three REITs, CCT will certainly appeal to investors with a long-term view. Going forward, REITs as an asset class will have enormous potential in Singapore and the Asia Pacific region."

 


CCT has a prime portfolio of seven commercial properties in Singapore's Central Business District (CBD). All seven buildings are located adjacent or close to MRT stations. The seven properties are:

 



  • Capital Tower
  • 6 Battery Road
  • Bugis Village
  • Starhub Centre
  • Golden Shoe Car Park
  • Market Street Car Park

As at 31 December 2003, CCT's portfolio has a total value of about S$2.018 billion, a combined net lettable area of about 1.8 million square feet (169,080 square metres) and, in respect of the two car park properties, 1,867 car park lots.

 


Following the 2004 Budget announcement on 27 February 2004, individuals who hold CCT units as investment assets but not through a partnership will enjoy tax exemption on the distributions received from CCT.

 


Key Dates

 


















11 May 2004

 


Trading of CCT on a "when issued" basis
Trading of CapitaLand shares "ex" distribution  

 


13 May 2004

 


Books Closure Date for Distribution In Specie

 


15 May 2004

 


Effective Date of Distribution In Specie

 


17 May 2004

 


Trading of CCT on a "ready" basis

 


20 May 2004

 


Settlement of all CCT trades done between 11 May to 17 May 2004

 


CCT trades under the stock code "CapitaComm". "Ready" trading will commence on 17 May 2004 when shareholders with CDP accounts will be able to check their entitlement for CCT units with CDP. A temporary counter has been set up for two months from 11 May 2004 to allow trading of CCT in board lots of 100 CCT units. Also, DBS Vickers Securities (Singapore) Pte Ltd, G.K.Goh Stockbrokers Pte Ltd, Kim Eng Securities Pte Ltd, Phillip Securities Pte Ltd, and UOB Kay Hian Private Ltd will offer preferential rates for these odd lot trades in CCT units of S$20 per contract instead of S$30.

 


After the two months, trading in odd lots will be conducted in SGX-ST's Unit Share Market. Due to a technical hitch this morning in the SGX trading system for the counter trading in board lots of 100 CCT units, CapitaComm 100, SGX has suspended trading for that counter today. We apologise for any inconvenience caused. We understand that the problem is being rectified and trading in this counter is expected to resume tomorrow on 12 May 2004.

 


About CapitaLand Limited
CapitaLand is one of the largest listed property companies in Asia. Headquartered in Singapore, the multinational company's core businesses in property, hospitality, property services and real estate financial services are focused in gateway cities in Asia, Australia and Europe. In these countries, CapitaLand is in partnership with reputable local players and has established a management team that understands the market, business practices and socioeconomic factors.

 


The company's hospitality businesses, in hotels and serviced residences, span more than 60 cities around the world. CapitaLand also leverages on its significant real estate asset base and market knowledge to develop fee-based products and services in Singapore and the region.

 


IMPORTANT NOTICE
Holders of units in CCT have no right to request CapitaCommercial Trust Management Limited (as manager of CCT) (the "Manager") to redeem or purchase their units for so long as the units are listed on the SGX-ST. It is intended that unitholders may only deal in their units through trading on the SGX-ST. The listing of the units on the SGX-ST does not guarantee a liquid market for the units.

 


You should read the introductory document dated 16 March 2004 issued in connection with the listing of CCT on the SGX-ST ("Introductory Document") carefully before taking any action in respect of the units in CCT or deciding whether to purchase units in CCT in the secondary market.

 


This press release is not an offer of securities for sale in the United States. Securities may not be sold in the United States unless they are registered or are exempt from registration. Neither CapitaLand Limited nor the Manager intends to register the introduction of the units in the United States or to conduct a public offering in the United States. Any public offering of securities to be made in the United States will be made by means of a prospectus that will contain detailed information about CapitaLand Limited, the Manager, CCT and/or their respective management, as well as financial statements. Copies of this press release are not being, and should not be, distributed in or sent into the United States.