CapitaLand plans to list shopping mall business on SGX

CapitaLand said on Monday its wholly-owned unit CapitaLand Retail will be listed on the SGX mainboard and be renamed CapitaMalls Asia.

Following a corporate reorganisation, CapitaMalls Asia will hold CapitaLand’s integrated shopping mall business, including the retail real estate fund and REIT management business.

CapitaMalls Asia will have 86 malls in its portfolio, with a total property value of S$20.3 billion. CapitaLand said the proposed listing of CapitaMalls Asia will enable the group to accelerate the growth of its integrated shopping mall business.

By creating a listed entity, the shopping mall business will have significant financial capacity, direct access to capital markets and complete in-house capabilities in retail real estate investment, development, mall operations, asset management and fund management.

The firm added that the move will unlock significant shareholder value and increase the overall financial capacity and flexibility of the CapitaLand Group.

In conjunction with the proposed listing, CapitaLand is considering a public offering of part of its shareholding interest in CapitaMalls Asia.

The property developer said it will retain majority control in the unit after the listing and for the foreseeable future. But it intends to offer an adequate number of shares to ensure that there is sufficient liquidity in the counter.

CapitaLand has engaged JP Morgan as its sole financial adviser. JP Morgan and DBS Bank have been appointed as the joint issue managers for the proposed offering.

Source : Channel NewsAsia – 5 Oct 2009

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