CMMT unitholders voted in favour of expansion of investment mandate

Expansion will enable CMMT’s exploration into other asset classes beyond the retail sector

CMMT’s investment objective and policy will expand beyond the retail sector to include commercial, office and industrial asset classes.

Kuala Lumpur, 14 June 2021 – CapitaLand Malaysia Mall Trust REIT Management Sdn. Bhd. (Manager), the manager of CapitaLand Malaysia Mall Trust (CMMT), is pleased to announce that Unitholders of CMMT have voted in favour of the proposed expansion of CMMT’s investment mandate (Investment Mandate Expansion).  More than 350 unitholders voted at CMMT’s Extraordinary General Meeting (EGM) held via electronic means today.  Approximately 100% of the total number of votes were in favour of the Investment Mandate Expansion.

The Unitholders were in support of the Manager’s proposal to expand CMMT’s investment objective and policy beyond the retail sector and this includes commercial, office and industrial asset classes1.  Consequently, the names of CMMT and the Manager will be changed to “CapitaLand Malaysia Trust” and “CapitaLand Malaysia REIT Management Sdn. Bhd.” upon obtaining the approvals of the relevant authority and Manager’s shareholders respectively.  The new names reflect CMMT’s expanded investment mandate.

Mr Lui Chong Chee, Chairman of CMRM, said: “We are heartened by the support given by Unitholders for CMMT’s Investment Mandate Expansion.  The Board of Directors is aligned with the management team on this proactive move, which enables CMMT to explore other asset classes and pivot itself into new economy sectors beyond the retail sector.  CMMT will be better positioned for growth by leveraging CapitaLand’s expertise and gain exposure to expanded asset classes.  This will enhance the Manager’s ability in delivering sustainable distributions and total returns to Unitholders in the long term.”

The accorded flexibility will enable CMMT to invest in a comprehensive range of income producing assets, to diversify its revenue stream and to build a sector-diversified portfolio.
CMMT continues to strengthen the performance of its existing portfolio whilst pursuing inorganic growth via acquisitions of properties in existing and new asset classes.

Ms Low Peck Chen, CEO of CMRM, said: “We are humbled by the confidence and trust that Unitholders have placed with us since CMMT’s listing in July 2010.  The accorded flexibility will enable us to invest in a comprehensive range of income producing assets, to diversify CMMT’s revenue stream and to build a sector-diversified portfolio.  A geographically- and sector-diversified portfolio will benefit CMMT in the long term as it enhances the resiliency of its portfolio and is less susceptible to unprecedented adverse events and unforeseeable external-led events and factors.  We will continue to strengthen the performance of the existing portfolio whilst pursuing inorganic growth via acquisitions of properties in existing and new asset classes, with financial discipline.  We will also explore opportunities from both our sponsor CapitaLand and third parties.”

Having obtained the Unitholders’ approval for the Investment Mandate Expansion, the Manager and MTrustee Berhad (Trustee of CMMT) will enter into the Fifth Amended and Restated Trust Deed to formalise the proposed mandate expansion and to reflect the proposed change of names.  Upon obtaining the necessary regulatory approvals, the Investment Mandate Expansion is expected to be completed by the third quarter of 2021.

Note:

1 It shall include but shall not be limited to business parks, logistics facilities, warehouses, distribution centres, data centres and integrated developments.

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