CapitaLand Mall Trust Management (CMTML), the manager of CapitaLand Mall Trust (CMT), announced that CMT has entered into an agreement to sell Rivervale Mall to a private equity fund managed by AEW Asia for $190.5 million.
Located in Sengkang New Town, the 99-year leasehold mall has a remaining lease term of approximately 81 years.
Completed in 2001, the three-storey shopping mall has a net lettable area of 81,159 sq ft and a committed occupancy of 100% as at end-September.
Its major tenants include NTUC, Daiso, McDonald’s and United Overseas Bank.
Based on the latest independent valuation as at end-June, the property is valued at $116 million.
CMT will realise a gain of about $72 million from the sale of the mall after taking into account the divestment fee and other divestment related expenses.
“As Rivervale Mall only makes up about 1% of CMT’s total deposited property value, its divestment presents minimal impact to CMT’s financial performance and distribution per unit,” says Wilson Tan, CMTML’s CEO.
He adds that the net sale proceeds of about $188 million will “enhance CMT’s financial flexibility”.
The sale of the mall is expected to be completed on or about Dec 2015. Upon completion of this transaction, CMT will own a portfolio of 16 operational shopping malls in Singapore.
Units in CMT closed 1% higher at $2.02.
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Located in Sengkang New Town, the 99-year leasehold mall has a remaining lease term of approximately 81 years.
Completed in 2001, the three-storey shopping mall has a net lettable area of 81,159 sq ft and a committed occupancy of 100% as at end-September.
Its major tenants include NTUC, Daiso, McDonald’s and United Overseas Bank.
Based on the latest independent valuation as at end-June, the property is valued at $116 million.
CMT will realise a gain of about $72 million from the sale of the mall after taking into account the divestment fee and other divestment related expenses.
“As Rivervale Mall only makes up about 1% of CMT’s total deposited property value, its divestment presents minimal impact to CMT’s financial performance and distribution per unit,” says Wilson Tan, CMTML’s CEO.
He adds that the net sale proceeds of about $188 million will “enhance CMT’s financial flexibility”.
The sale of the mall is expected to be completed on or about Dec 2015. Upon completion of this transaction, CMT will own a portfolio of 16 operational shopping malls in Singapore.
Units in CMT closed 1% higher at $2.02.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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