CapitaLand China Trust has divested the CapitaMall Shuangjing for RMB842 million ($157.8 million).
This property in Beijing was part of the initial portfolio when CLCT was listed back in 2006.
The sale will net CLCT RMB690.7 million and give it an exit yield of 2.8%.
Proceeds from the divestment will give CLCT greater financial flexibility to pursue capital recycling and portfolio reconstitution initiatives.
"CapitaMall Shuangjing is a predominantly master-leased mall that would require significant capital outlay and planning downtime to repurpose the building and remain competitive," says Tan Tze Wooi, CEO of the REIT's manager.
"As such, this divestment presents a good opportunity to unlock value and enhance total returns for unitholders," he adds.
See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM
Upon completion of the divestment, targeted by first quarter next year, CLCT will own a portfolio of 10 shopping malls, five business park properties and four logistics park properties located in 12 cities in mainland China.
