Sources say that CapitaCommercial Trust could be very close to selling StarHub Centre, a 10-storey commercial building at Cuppage Road. The centre is valued at $268 million at end-December 2009.

GuocoLand, which is near Somerset MRT Station, will probably be the frontrunner for the property. After an expression of interest for the property closed last month, it was one of the parties shortlisted to do due assiduousness.

Frasers Centrepoint group is also said to have participated in the EOI exercise. Its Centrepoint Shopping Centre is connected via a second-storey link bridge to StarHub Centre.

The contract value for StarHub Centre is projected to be above its Dec 31, 2009, assessment of $268 million. The end-2009 assessment was 19.5% below the end-2008 valuation of $332.8 million.

A sale of StarHub Centre would not be astounding. Earlier this year, CCT supposed it was evaluating plans for the non-Grade A property. It is at present zoned for merely viable use but CCT has attained outline planning authorization from Urban Redevelopment Authority to alter its use to a inhabited and commercial property.

Market watchers recommend that CCT would have applied to Singapore Land Authority seeking a rent top-up to 99 years but a conclusion has perhaps not been made. The site has a lingering lease term of about 85 years.

Market watchers propose that one issue CCT and any possible buyer would probably be hammering out is whether the sale will be subject to consent from SLA for the lease to be reset to 99 years.