CapitaMalls snaps up Malaysian centre
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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.
Questions & Answers
Q.What was the final purchase price for the Tropicana City Mall and its office tower?
What was the final purchase price for the Tropicana City Mall and its office tower?
CapitaMalls Malaysia Trust will pay RM540 million, which is equivalent to US$150 million, for the Tropicana City Mall and its associated office tower. This figure represents the agreed acquisition cost between the parties.
Q.What is the occupancy rate of the mall and the office tower at the time of the announcement?
What is the occupancy rate of the mall and the office tower at the time of the announcement?
As of January 15, the Tropicana City Mall had an occupancy rate of 89.2 per cent. The attached 12-storey office building was fully leased at that same time, indicating strong tenant demand for the office space.
Q.How will this acquisition impact CapitaMalls Malaysia Trust's total property asset value?
How will this acquisition impact CapitaMalls Malaysia Trust's total property asset value?
Following the acquisition, CMMT's property asset value is expected to increase by 16.7 per cent. This will raise their total value from RM3.2 billion to approximately RM3.8 billion, significantly expanding their portfolio.
Q.How does CapitaMalls Malaysia Trust plan to fund this purchase?
How does CapitaMalls Malaysia Trust plan to fund this purchase?
CapitaMalls Malaysia Trust intends to fund the acquisition through a combination of debt and/or equity fundraising. This will involve the issuance of new units to finance the transaction.
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