Business

Wednesday June 15, 2011

CMMT buys East Coast Mall for RM310m


PETALING JAYA: CapitaMalls Malaysia Trust (CMMT), through its trustee AMTrustee Bhd, has entered into a conditional sale-and-purchase agreement with Astral Realty Sdn Bhd for the acquisition of East Coast Mall in Kuantan for a cash consideration of RM310mil.

In an announcement to Bursa Malaysia yesterday, CIMB Investment Bank Bhd on behalf of CapitaMalls Malaysia REIT Management Sdn Bhd, the management company of CMMT, said the acquisition consisted of a four-storey shopping mall with one basement level comprising retail space on the ground, first, second and third floors, together with 1,170 car parking bays at the basement level, surface car park on the ground floor, third floor and on the rooftop.

As at May 1, CMMT was the largest “pure-play” shopping mall real estate investment trust in terms of property asset value in Malaysia, and the proposed acquisition will further strengthen this position.

“Following the completion of the proposed acquisition, CMMT's property asset value is expected to increase from approximately RM2.37bil to about RM2.7bil,” it said.

Kuantan attraction: CMMT’s proposed acquisition of East Coast Mall is expected to be completed by the last quarter of 2011.

CMMT intends to fund the proposed acquisition through debt and equity to be raised via a proposed placement of up to 298.971 million new units in CMMT by way of book building, representing up to 20% of the existing units in CMMT.

Barring any unforeseen circumstances, the proposals are expected to be completed by the last quarter of 2011.

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