Proposed divestment of Gurney Plaza Extension to CapitaMalls Asia

CapitaMalls Asia (CMA) is buying a Malaysian mall from an associate firm of Metro for S$91.5 million after the Metro unit exercised a put option.

The move by Metro’s Gurney Plaza requires CMA’s CapitaRetail Gurney to buy the property called Gurney Plaza Extension.

Located in Penang, Gurney Plaza Extension is a nine storey retail block.

It is part of the Gurney Park development and has about 12,500 square metres of net lettable area.

As at March 31, the mall enjoyed some 98.7 per cent occupancy.

Metro said it is divesting the property as Gurney Plaza Extension has since matured and now has a stable rental income.

Metro said net proceeds of the divestment will be added to the working capital of the group.

It will also be used to build on the Metro Group’s presence and investment in the region.

Under the terms of the deal, CMA is required to complete the acquisition by 15 April 2011.

CMA said it has designated CapitaMalls Malaysia Trust or CMMT as its listed vehicle to hold its stabilised Malaysian retail assets.

It will be granting CMMT a right of first refusal to acquire Gurney Plaza Extension after the finalisation of all the terms and conditions of the acquisition.

Source : Channel NewsAsia – 5 Jul 2010