CapitaLand Mall Trust agreed to divest its entire interest in Victory SR Trust, which owns a serviced residence component in the Funan integrated development in Singapore's Civic & Cultural District at 109 N. Bridge Rd.
The interest is being divested to Victory SR Pte. Ltd., which is a wholly owned subsidiary of Ascott Serviced Residence (Global) Fund Pte. Ltd. The site will be utilized to develop CapitaLand Ltd.'s Singapore flagship of its new lyf brand, with a co-living property to be launched on the plot, which will be renamed lyf Funan Singapore.
The nine-story building has a gross floor area of about 121,000 square feet and will be managed by The Ascott Ltd. once its construction is completed in the fourth quarter of 2019.
The parties agreed on a land value of S$90.5 million for the building, and S$11.3 million for other assets. The divestment, expected to complete in the fourth quarter, should generate proceeds of about S$101.8 million and a net gain of roughly S$20.6 million for CapitaLand.
The property will also incur almost S$80 million in development cost.
As of Aug. 3, US$1 was equivalent to S$1.36.