The Board of Directors of SingMall Property Trust Management Limited, the manager of the proposed SingMall Property Trust, today announced that it has deferred its listing of Units in SingMall Property Trust (IPO) and cancelled the initial public offering in the light of current market conditions.

In addition to the current market conditions, over the past few days, in the midst of the IPO, there was a surge in both debt and equity capital raising by several prominent Singapore companies that affected the subscription rate for the IPO. Several potential substantial investors declined to proceed with their orders for Units in SingMall Property Trust. There is currently inadequate investor demand to complete the S$530 million public offer.

Robin Tomlin, Managing Director & Head of Singapore Corporate Finance of UBS Warburg, the sole Financial Advisor and sole Bookrunner for the offer, stated, The IPO was marketed to institutional investors in both Singapore and the international market and included a retail public offer. Despite a promising initial response, there was insufficient investor demand for the IPO to provide a successful transaction and sufficient liquidity in the aftermarket.

Liew Mun Leong, CEO of CapitaLand Limited, the parent of SingMall Property Trust Management Limited, stated, We will activate our alternative plan to establish a private fund to take ownership of the three properties, Tampines Mall, Junction 8 and Funan The IT Mall and financing is in place to complete the transaction. We are confident of the viability of the listed property trust product in Singapore and intend to launch it in the future, when market conditions are favourable.

Ed Ng, Deputy Chairman of SingMall Property Trust Management Limited and CEO of the sponsor, CapitaLand Commercial Limited, said, We firmly believe in the viability of a listed property trust comprising the three retail malls. It remains our strategy to manage these retail malls to create additional value and to generate yields in line with those outlined in the Prospectus.

Stephen Finch, Managing Director Debt Capital Markets of DBS Bank, the Joint-Issue Manager of the IPO, said In accordance with the terms of the Prospectus, all application moneys, including amounts applied for by individual investors through ATM networks of participating banks and, manual and Internet applications, will be returned in full. It is expected that the moneys will be returned within three market days. CapitaLand Limited and SingMall Property Trust Management Limited wish to thank all investors who took the time to consider investing in SingMall Property Trust.

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Issued jointly by CapitaLand Limited and SingMall Property Trust Management Limited