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CapitaLand and CapitaLand Retail China Trust (CRCT), via their respective subsidiaries, have agreed to divest their combined 100 percent interests in a company owning CapitaMall Wuhu (pictured).
The transaction is based on the adjusted net value of the company, which included its interest in CapitaMall Wuhu amounting to RMB210 million (S$41.5 million).
Located in Wuhu City within China’s Anhui province, CapitaMall Wuhu is a five-storey mall with a gross floor area of about of 484,375 sq ft, excluding the car park. It closed in Q3 2018 after the anchor tenant left.
According to Tan Tze Wooi, CEO of CRCT’s manager, the divestment is in line with its strategy to optimise CRCT’s portfolio and enhance returns.
“The sale proceeds will provide CRCT with greater financial flexibility to take advantage of market opportunities. We remain on the lookout for strategic opportunities to reconstitute and strengthen our portfolio.”
Meanwhile, CapitaLand Group President (China & Investment Management) Lucas Loh noted that the sale will “unlock capital that can be redeployed to core assets in cities where CapitaLand enjoys scale and competitive advantage”.
“We will stay disciplined in our capital recycling efforts and continually review opportunities to optimise CapitaLand’s portfolio, which include divestment of assets that are non-core or have limited growth,” Loh noted.
CaptiMall Wuhu’s divestment is expected to be completed in the second half of 2019.
The divestment will bring CRCT’s portfolio to 10 malls across seven Chinese cities, and CapitaLand’s retail network in China to 51 malls in 21 cities.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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