CapitaMalls Malaysia Trust’s manager CapitaMalls Malaysia REIT Management (CMRM) is acquiring a mall in Kuantan, Malaysia for RM310 million (S$126 million).
Including the acquisition fee and expenses, the total acquisition cost for East Coast Mall works out to be RM330 million (S$134.1 million).
The firm plans to fund the acquisition through a mix of debt and equity. Proceeds should come from a proposed placement of 299 million new CapitaMalls Malaysia Trust (CMMT) units, or 20 per cent of CMMT’s existing 1.49 billion units.
The unit placement has been approved by CMMT unitholders in a meeting on March 10.
CMRM said East Coast mall has an occupancy rate of 97 per cent, with a projected property yield of 7.1 per cent for 2011.
Based on CMMT’s closing price of RM1.17 on June 13, the trust’s property yield for this year is at 6.4 per cent.
CMRM said the acquisition will contribute to its yield, which may improve returns for its unitholders.
East Coast Mall is a four-storey shopping mall with a net lettable area of more than 440,000 square feet, one basement car park level and 1,170 car park lots.
It was opened in April 2008 and is the newest shopping mall in the city. The mall is located within Kuantan City Centre and is part of a hotel and convention development called Putra Square.
East Coast Mall enjoys shopper traffic from the Zenith Hotel, which has 519 rooms, as well as the Sultan Ahmad Shah International Convention Centre, which has seating capacity of 6,000 people.
Kuantan is the capital and largest city of the state of Pahang, located on the East Coast of the Malaysian Peninsular, and has a population of more than 600,000 people.
Source : Channel NewsAsia – 14 Jun 2011