CapitaLand earns $40m from sale of office space

CAPITALAND has sold all its entire interest in the Samsung Hub office block to two different buyers for a gain of $40 million.

The entire divestment of space in the central business district building amounted to $152.9 million.

Property company Ho Bee Development has bought the first floor and the eighth to 14th floors from CapitaLand subsidiary China Square Holdings for $134.3 million, or $1,384 per sq ft.

Ho Bee Development is a subsidiary of Ho Bee Investment. The purchase is in line with its strategy of acquiring quality commercial properties in view of the strong outlook on the Singapore economy.

CapitaLand has also sold the 15th floor of the 30-storey office building in Church Street to Chinese Chamber Realty - the property arm of the Singapore Chinese Chamber of Commerce & Industry - for $18.6 million.

The sales come amid a booming market for office property with prime space at a premium.

Samsung Hub hit the headlines when a 0.1-degree tilt developed during construction in mid-2002 due to the soil settlement. The tilt was later corrected in a two-year rectification process by the building's contractor, Samsung Corporation.

CapitaLand spokesman Julie Ong said the company made a profit of $40 million from the sale of the office, which comprised its entire holding in Samsung Hub.