CapitaLand Commercial Limited (CCL), a wholly-owned subsidiary of listed CapitaLand Limited (CapitaLand), has entered into a conditional put and call option agreement to acquire IMM Building which enjoys a prime location near the Jurong East MRT station and bus interchange.

The total acquisition cost amounts to S$262.6 million. This includes the purchase price of S$247.4 million and after taking into account the transaction costs such as stamp duty (estimated to be S$8.4 million) and other fees and expenses for financial advisory, accounting, tax, legal and property due diligence.

Mr Liew Mun Leong, President and CEO of CapitaLand said : IMM Building has delivered strong cashflow and attractive yields. It caters to the shopping needs of the densely populated housing suburbs in the western part of Singapore and benefits from a loyal customer base. We also see a tremendous potential for growth through asset enhancements.

IMM Building is owned by International Merchandise Mart Ltd (IMML). The agreement with IMML is conditional on, among other things, IMML successfully implementing schemes of arrangement to restructure its debts. The restructuring process will involve the refinancing of IMMLs existing financial indebtedness (inclusive of default interest and dividends in arrears) for secured creditors and preference shareholders, and shareholders approval for the sale of IMM Building.

Right of First Refusal to CapitaMall Trust Pursuant to an agreement between CCL and the trustee of CapitaMall Trust (CMT) dated 28 June 2002, CCL has granted CMT a right of first refusal to purchase retail properties which may be acquired by CCL. Accordingly, CCL has today offered CMTs trustee the right of first refusal to purchase IMM Building at the same terms and conditions offered to CCL. Specifically, if CMT decides to accept the right of first refusal and enters into a purchase agreement with IMML, CMT would have to pay the purchase price and bear all transactional costs incurred for the acquisition.

In the event that CMT decides not to acquire IMM Building, CCL will complete the purchase of IMM Building for its own investment purposes.

Expected Timeline Subject to the fulfilment of conditions, the acquisition is currently expected to complete within approximately 20 weeks. Barring unforeseen circumstances, this allows adequate time for IMML to undertake the restructuring and the schemes of arrangements and for CMT to procure the necessary unit-holder approvals and financing arrangements.

About IMM Building