CapitaMall Trust buys The [email protected] development for S$840m

CapitaMall Trust (CMT) has bought The [email protected] office development for about S$840 million.

CMT said the purchase from the Singapore Land Authority (SLA) will be funded by a mix of debt and convertible bonds.

Describing the acquisition as yield-accretive, the Trust plans to issue at least S$650 million worth of bonds.

The [email protected] is a commercial development comprising two Grade A office towers and some ground floor retail space.

CMT plans to integrate the development with the Plaza Singapura shopping mall next door which it also owns.

Deputy Chairman of CapitaMall Trust Management Liew Mun Leong said the proposed merger of the two properties will create one of the largest integrated developments along Orchard Road.

The combined property will have about 170m of prime retail frontage and over 900,000 sq ft of net lettable space.

The acquisition will also grow CMT’s asset size by 15 percent to some S$6.9 billion.

With the latest purchase, CMT has revised its local target asset size from S$8 billion to S$9 billion by 2010.

Source : Channel NewsAsia – 22 May 2008

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