CapitaMalls Asia to buy Penang mall

CapitaMalls Asia is acquiring Penang’s largest mall — Queensbay Mall — for RM658.3 million (S$275.6 million).

It will be the firm’s second mall in Penang and its fourth in Malaysia.

The acquisition will be carried out through CapitaMalls Asia’s subsidiaries with an asset-backed securitisation structure, the company said.

CapitaMalls Asia will acquire 90.7 per cent of the Queensbay Mall’s retail strata area estimated at 916,181 square feet and all its car park space.

The purchase price is equivalent to around RM730 (S$306) per sq ft of net lettable area.

The acquisition will also form the seed asset of CapitaMall Asia’s planned RM1.0 billion (S$418.6 million) Malaysia retail property fund which provide a pipeline of shopping malls for CapitaMalls Malaysia Trust to acquire.

CapitaMalls Asia CEO Lim Beng Chee said the acquisition will strengthen CapitaMalls Asia’s leadership in the state.

“While Queensbay Mall’s property yield is about five per cent, we will leverage on our scale and expertise to upgrade the mall further through remixing the tenancy as well as improving the asset plan to realise the potential of the mall,” Mr Lim said.

As of end-September, the five-storey mall has more than 300 tenants, which include Jusco, Golden Screen Cinemas, Borders, Harvey Norman and Padini Concept Store.

CapitaMalls Asia’s other three malls in Malaysia are Gurney Plaza in Penang, Sungei Wang Plaza in Kuala Lumpur, and The Mines in Selangor.

Source : Channel NewsAsia – 22 Dec 2010

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