KUALA LUMPUR, Nov 9 — CapitaLand Malaysia Trust’s trustee, MTrustee Bhd, will acquire 91.8 per cent of the total strata floor area of retail parcels in Queensbay Mall from parties related to CapitaLand Investment Ltd for RM990.50 million.
The involved parties were Special Coral Sdn Bhd and Retail Galaxy Pte Ltd.
The trust’s manager, CapitaLand Malaysia REIT Management Sdn Bhd, said the proposed acquisition is in line with CapitaLand Malaysia Trust’s investment objective to invest on a long-term basis in income-producing real estate which is primarily used for retail, commercial, office and industrial purposes in Malaysia.
“The proposed acquisition will reduce CapitaLand Malaysia Trust’s exposure in Klang Valley in terms of assets under management from approximately 41 per cent to 33 per cent, thereby strengthening its portfolio resilience.
“With the property’s occupancy rate of 95 per cent, the proposed acquisition also increases CapitaLand Malaysia Trust’s enlarged portfolio occupancy rate to 85.8 per cent from its existing 83.1 per cent, contributing to income stability,” it said in a filing with Bursa Malaysia today.
It said a private placement of new units would be undertaken to raise gross proceeds of up to RM495.25 million by way of book building to part finance the proposed acquisition.
In a separate statement, CapitaLand Malaysia REIT Management said the total acquisition cost is approximately RM1.03 billion after taking into account the acquisition fees and expenses and would be funded by a combination of bank borrowings and proceeds from the proposed private placement.
It said the acquisition, which is conditional upon the approval of CapitaLand Malaysia Trust’s non-interested unitholders at an extraordinary general meeting to be convened at a later date, is expected to be completed by the first quarter of next year.
CapitaLand Malaysia REIT Management chairman Lui Chong Chee said the proposed acquisition of Queensbay Mall would deepen CapitaLand Malaysia Trust’s presence in Penang, thus strengthening its foothold in the northern region of Malaysia, where it already owns Gurney Plaza and is targeting to complete the acquisition of its first logistics property.
“With a more diversified and resilient portfolio after adding Queensbay Mall and the logistics property, CapitaLand Malaysia Trust will be in a stronger position to deliver long-term value to its unitholders,” he added. — Bernama
