Friday, May 04, 2012

CapitaMall Trust selling Hougang Plaza for S$119.1m

SINGAPORE: Singapore-listed CapitaMall Trust (CMT) is selling Hougang Plaza to Oxley Bloom for S$119.1 million.

In a statement, CMT said it will realise a net gain of about S$83.8 million from the sale of the mall.

The property is valued at S$34 million as at the end of 2011, according to independent valuation.

Mr Simon Ho, CEO of CapitaMall Trust Management Limited (the manager of CMT), said, "After reviewing all options for Hougang Plaza, we believe that a sale of the asset would unlock higher value for our unitholders. If we had opted to retain the asset, we would have to commit significant capital expenditure over the next few years to maintain the mall."

CMT added that the sale will raise about S$117.8 million in net proceeds which can be used for the refinancing of debts as well as acquisition opportunities should they arise.

The sale of Hougang Plaza is expected to be completed around June 13 this year.

CMT said upon completion of the deal, it will have a portfolio of 15 operational shopping malls in Singapore valued at about S$7.8 billion.

- CNA/cc

View the original article here

Source From Channel News Asia

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