CapitaMalls snaps up Malaysian centre

CapitaMalls Malaysia Trust will pay RM540 million (US$150 million) to buy the Tropicana City Mall and its office tower.

The four level Tropicana City Mall opened in 2008 and has a net lettable area of 448,248 sqft and 1759 car park. It is attached to a 12-storey office building.

As of January 15, the mall had an occupancy rate of 89.2 per cent and the office tower was fully leased. CapitaMalls had previously considered buying the mall in mid 2013, but the negotiations ended after both parties were unable to agree to purchase terms.

“The proposed acquisition will further strengthen CMMT’s position as a sizeable, well geographically diversified shopping mall real estate investment trust in Malaysia,” CMMT said in a statement.

“Following the completion of the proposed acquisition, CMMT’s property asset value will increase by 16.7 per cent from RM3.2 billion to about RM3.8 billion. This is expected to increase CMMT’s visibility among Malaysian and international investors to support its future growth.”
CMMT will fund the purchase through debt and/or equity fundraising, issuing new units.