Capitaland Limited is selling Bedok Mall to CapitaLand Mall Trust (CMT) for S$783.1 million, the real estate group said on Tuesday after markets closed.
The deal, which will strengthen CMT’s position as Singapore’s largest real estate investment trust (Reit), involves CMT acquiring the entire unitholding interest in Brilliance Mall Trust, which owns Bedok Mall.
CapitaLand, a Temasek subsidiary, is the controlling unitholder of CMT with an aggregate deemed holding of some 27.71 per cent.
Opened in December 2013, Bedok Mall is the first major mall in Bedok Town Centre. It is part of an integrated retail-residential-transport development, which includes the 583-unit condominium Bedok Residences developed by CapitaLand that received its Temporary Occupancy Permit in May 2015.
Of the $783.1 million consideration, CapitaLand will receive from CMT about S$464 million, including 72 million new units in CMT, which will be priced at the 10-day volume weighted average price immediately preceding the date of completion of the transaction. An existing bank loan of S$319.1 million taken by Brilliance Mall Trust will also be repaid.
Bedok Mall, with a net lettable area of some 222,500 sq ft, has a committed occupancy of 99.3 per cent as at Dec 31.
“The proposed divestment of Bedok Mall, as well as the ongoing divestment of a group of serviced residences and rental housing properties to Ascott Residence Trust and our 30 per cent stake in PWC Building announced last month, are all examples of our robust capital recycling strategy,” said Lim Ming Yan, president and group CEO of CapitaLand.
For CMT, “Bedok Mall’s property yield of approximately 5.1 per cent is in line with CMT’s distribution yield”.
The divestment was based on an agreed value of S$780 million for Bedok Mall and other net assets of Brilliance Mall Trust of about S$3.1 million. Bedok Mall was valued at S$775 million as at June 30. The transaction, subject to CMT unitholders’ approval, is expected to be completed by the fourth quarter of this year.
CapitaLand ended trading up one cent at S$3.38 on Tuesday while CMT closed two cents up at S$2.16.