CapitaLand Mall Trust sells Rivervale Mall for S$190.5 million
Singapore, 15 October 2015 – CapitaLand Mall Trust Management Limited (CMTML), the manager of CapitaLand Mall Trust (CMT), announced today that CMT, through its trustee HSBC Institutional Trust Services (Singapore) Limited, has entered into an agreement to sell its property, Rivervale Mall, to a private equity fund managed by AEW Asia for S$190.5 million.
Located in Sengkang New Town, Rivervale Mall is held on a 99-year leasehold title commencing from 6 December 1997, with a remaining lease term of approximately 81 years. Completed in 2001, it is a three-storey shopping mall with a net lettable area of 81,159 square feet. The mall had a committed occupancy of 100% as at 30 September 2015. Its major tenants include NTUC, Daiso, McDonald’s and United Overseas Bank.
Based on the latest independent valuation as at 30 June 2015, the property is valued at S$116.0 million. CMT will realise a gain of about S$72.0 million from the sale of Rivervale Mall after taking into account the divestment fee and other divestment related expenses.
Mr Wilson Tan, CEO of CMTML, said: “The optimal option for Rivervale Mall after our evaluation was a sale of the asset, as it would unlock the highest value for our unitholders. As Rivervale Mall only makes up about 1% of CMT’s total deposited property value, its divestment presents minimal impact to CMT’s financial performance and distribution per unit. The net sale proceeds of about S$188.0 million will enhance CMT’s financial flexibility.”
The sale of Rivervale Mall is expected to be completed on or about 15 December 2015. Upon completion of this transaction, CMT will own a portfolio of 16 operational shopping malls in Singapore.