CapitaLand Malaysia REIT Management Sdn. Bhd. the manager of CapitaLand Malaysia Trust has entered into agreements to acquire 91.8% of the total strata floor area of retail parcels in Queensbay Mall for RM990.50 million.
Valued at RM1 billion, the purchase consideration was negotiated on a willing-buyer-willing-seller basis and represented a discount of approximately 1.0%.
To finance the acquisition, the Manager proposes to undertake a private placement, which entails the issuance of new CapitaLand Malaysia Trust units to raise gross proceeds of up to 50% of the total purchase consideration.
Queensbay Mall is a free-standing 8-storey shopping centre with a lower ground floor and a lower ground mezzanine comprising five floors of retail space and car parks. The property is located in Bayan Lepas, Pulau Pinang and it is one of
the largest malls in Penang.
With a net lettable area of 883,111 square feet (sq ft) and a committed occupancy of 95%, the mall has a diverse mix of tenants from different trades, including entertainment, lifestyle, fashion, and dining, segregated on a thematic basis throughout the floors of the shopping complex.
Commenting on the acquisition Lui Chong Chee, Chairman of CMRM, said: “As Malaysia emerges from the pandemic, this is an opportune time for CLMT to expand its portfolio of shopping malls and ride on the recovery of the country’s retail sector. The proposed acquisition of Queensbay Mall will deepen CLMT’s presence in Penang, thus strengthening its foothold in the northern region of Malaysia, where it already owns Gurney Plaza and is targeting to complete the acquisition of its first logistics property.
