CapitaLand said on Tuesday that its related entities have embarked on an asset swap arrangement to take full ownership of 22 retail malls in China.
The firm said its sponsored funds, CapitaRetail China Development Funds, agreed to an asset swap arrangement with SZITIC Commercial Property (SCP).
Under the deal, the development funds will swap their 65 per cent equity stakes in 4 projects and 50 per cent interest in Shenzhen’s Xiangmihu Mall.
In return, they will get SCP’s 35 per cent equity stake in 16 retail projects and SCP’s 49 per cent stake in 6 projects.
No additional investment outlay is required for the transactions.
Following the asset swap, CapitaLand, together with its development funds and CapitaRetail China Trust, will have full ownership interest of the 22 malls.
The malls are anchored by US bigwig, Wal-Mart.
CapitaLand said the deal will ensure a better integration of its retail operations and investments in China.
With the move, CapitaLand’s retail portfolio in China will comprise 46 malls across 32 cities worth a total asset value of S$6.2 billion.
Source : Channel NewsAsia – 29 Sep 2009