SINGAPORE (Apr 19): CapitaLand Mall Trust (CMT) has agreed to sell Sembawang Shopping Centre to a joint venture between Lian Beng Group and Apricot Capital for $248 million.
Sembawang Shopping Centre was valued at $126.0 million as at Dec 31 2017. The divestment is expected to generate net proceeds of about $245.6 million and a net gain of about $119.6 million when the transaction is completed by June 2018.
Located along Sembawang Road, Sembawang Shopping Centre reopened to shoppers in 2008 following CMT’s acquisition in 2005. It comprises four levels of retail space – three levels above ground and one basement level – with a net lettable area of 143,631 square feet. The mall registered a committed occupancy of 99.4% as at 31 December 2017. Its major tenants include Giant, Yamaha Music School, Food Junction and Daiso Japan.
Tony Tan, CEO of manager CapitaLand Mall Trust Management (CMTML), says: “The divestment of Sembawang Shopping Centre is in line with our portfolio management strategy of maximising returns for our unitholders. By unlocking the value of Sembawang Shopping Centre at this stage, it will realise the optimal value for CMT’s unitholders. As the mall accounts for only about 1% of CMT’s total asset value, its sale will have minimal impact on CMT’s financial performance and distribution per unit. The net proceeds from the divestment will further enhance and strengthen CMT’s financial flexibility.”
Upon completion of this transaction, CMT’s portfolio will comprise 15 properties located in suburban areas and downtown core of Singapore. They are Tampines Mall, Junction 8, Funan, IMM Building, Plaza Singapura, Bugis Junction, JCube, Raffles City Singapore, Lot One Shoppers’ Mall, Bukit Panjang Plaza, The Atrium@Orchard, Clarke Quay, Bugis+, Westgate and Bedok Mall.
Shares in CMT closed 2 cents higher at $2.11 on Wednesday.
