KUALA LUMPUR: CapitaLand Malaysia Trust's (CLMT) trustee MTrustee Bhd is acquiring 91.8 per cent of the total strata floor area of retail parcels in Queensbay Mall in Penang from parties related to CapitaLand Investment Ltd (CLI) for RM990.5 million.
In a statement today, CLMT's manager CapitaLand Malaysia REIT Management Sdn Bhd (CMRM) said the purchase consideration was negotiated on a willing-buyer willing-seller basis and represented a discount of one per cent to the independent valuation of RM1 billion commissioned by the trustee.
"To finance the acquisition, the manager proposes to undertake a private placement, which entails the issuance of new CLMT units to raise gross proceeds of up to 50 per cent of the total purchase consideration.
"The issue price of the proposed private placement will be determined later by way of a bookbuilding process," it said.
In support of CLMT, the MTrustee is committed to support the proposed private placement and intends to take up its pro-rata entitlement included as part of the funding for CLMT to acquire the mall.
As at Nov 3 thus year, CLI had a deemed interest of 39.3 per cent in CLMT.
CMRM chairman Lui Chong Chee said as Malaysia emerged from the pandemic, this was an opportune time for CLMT to expand its portfolio of shopping malls and ride on the recovery of the country's retail sector.
"The proposed acquisition of Queensbay Mall will deepen CLMT'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, CLMT will be in a stronger position to deliver long- term value to its unitholders," he said.
CMRM chief executive officer Tan Choon Siang said the acquisition, its largest since listing, would add meaningful scale to CLMT and reflected its continuing efforts to enhance CLMT's portfolio resilience and income diversification.
"Post-acquisition of Queensbay Mall and the logistics property in Sungai Jawi, Penang, CLMT will have seven properties in its enlarged portfolio, with an uplift of 28.2 per cent in assets under management to RM4.9 billion and an increase of 39.7 per cent in net lettable area to approximately 4.3 million sq ft.
"Queensbay Mall's property yield of 7.3 per cent is reasonable and will increase the overall property yield of CLMT's portfolio.
"The proposed acquisition will contribute positively to CLMT's earnings and is expected to be yield accretive upon completion," he said.