KUALA LUMPUR: ''CapitaMalls Malaysia Trust (CMMT) has entered into a conditional sale and purchase agreement to acquire the East Coast Mall in Kuantan for RM310 million.
In a statement Tuesday, June 14, CapitaMalls Malaysia REIT Management Sdn Bhd (CMRM), the manager of CMMT, said that the AmTrustee Bhd had entered into the agreement on behalf of CMMT.
CMRM said that including the acquisition fee and expenses, the total acquisition cost was about RM330 million, and that the mall had been independently valued at RM330 million.
It said the four-storey mall, which was opened in April 2008, was the newest mall in Kuantan, and was part of a mixed development called Putra Square, which also comprised the 519-room Zenith Hotel and Sultan Ahmad Shah International Convention Centre, which has a seating capacity of 6,000 people.
"Due to its location in Putra Square, East Coast Mall enjoys shopper traffic from hotel guests and visitors to the Convention Centre,' it said.
CMRM said the mall has a nearly-full occupancy rate of 97.0%, with a forecast property yield of about 7.1%1 for 2011.
'Based on CMMT's closing price of RM1.17 on June 13, 2011, CMMT's implied property yield for 2011 is about 6.4%2.
'As such, this acquisition is yield-accretive to CMMT unitholders,' it said.
CMRM said the acquisition would be funded through a combination of debt and equity, the latter of which will be raised via a proposed placement of up to 298.97 million new CMMT units to parties to be identified, at a price to be determined by way of bookbuilding.
The number of new units represented up to 20% of CMMT's existing 1.494 billion units, as authorised by unitholders at the unitholders' meeting on March 10, 2011, it said.
The acquisition and placement are expected to be completed by the last quarter of 2011, it said.
CMRM chairman Kee Teck Koon said the acquisition of the East Coast Mall would provide CMMT the opportunity to penetrate into the retail sector in the East Coast of Peninsular Malaysia.
'It will enhance CMMT's income and geographical diversifications, and further strengthen CMMT's position as the largest 'pure-play' shopping mall REIT in Malaysia,' he said.
CMRM chief executive Sharon Lim said the mall had been able to attract a variety of established Malaysian and international retailers such as Carrefour, Padini, Parkson, Sony Centre, Golden Screen Cinemas and Starbucks.
'As such, East Coast Mall has become a popular destination among the people in Kuantan, and attracts a secondary catchment market from nearby towns in the neighbouring state of Terengganu,' she said.
In a statement Tuesday, June 14, CapitaMalls Malaysia REIT Management Sdn Bhd (CMRM), the manager of CMMT, said that the AmTrustee Bhd had entered into the agreement on behalf of CMMT.
CMRM said that including the acquisition fee and expenses, the total acquisition cost was about RM330 million, and that the mall had been independently valued at RM330 million.
It said the four-storey mall, which was opened in April 2008, was the newest mall in Kuantan, and was part of a mixed development called Putra Square, which also comprised the 519-room Zenith Hotel and Sultan Ahmad Shah International Convention Centre, which has a seating capacity of 6,000 people.
"Due to its location in Putra Square, East Coast Mall enjoys shopper traffic from hotel guests and visitors to the Convention Centre,' it said.
CMRM said the mall has a nearly-full occupancy rate of 97.0%, with a forecast property yield of about 7.1%1 for 2011.
'Based on CMMT's closing price of RM1.17 on June 13, 2011, CMMT's implied property yield for 2011 is about 6.4%2.
'As such, this acquisition is yield-accretive to CMMT unitholders,' it said.
CMRM said the acquisition would be funded through a combination of debt and equity, the latter of which will be raised via a proposed placement of up to 298.97 million new CMMT units to parties to be identified, at a price to be determined by way of bookbuilding.
The number of new units represented up to 20% of CMMT's existing 1.494 billion units, as authorised by unitholders at the unitholders' meeting on March 10, 2011, it said.
The acquisition and placement are expected to be completed by the last quarter of 2011, it said.
CMRM chairman Kee Teck Koon said the acquisition of the East Coast Mall would provide CMMT the opportunity to penetrate into the retail sector in the East Coast of Peninsular Malaysia.
'It will enhance CMMT's income and geographical diversifications, and further strengthen CMMT's position as the largest 'pure-play' shopping mall REIT in Malaysia,' he said.
CMRM chief executive Sharon Lim said the mall had been able to attract a variety of established Malaysian and international retailers such as Carrefour, Padini, Parkson, Sony Centre, Golden Screen Cinemas and Starbucks.
'As such, East Coast Mall has become a popular destination among the people in Kuantan, and attracts a secondary catchment market from nearby towns in the neighbouring state of Terengganu,' she said.
No comments:
Post a Comment