CapitaMalls Malaysia Trust property, Plaza GurneyCapitaMalls Malaysia Trust property, Plaza Gurney

Malaysia-listed retail REIT CapitaMalls Malaysia Trust (CMMT) plans to issue up to 299.6 million new units to raise funds for the acquisition of Tropicana City Mall, the REIT has disclosed.

CMMT announced in January 2015 that it will be acquiring the mall, together with the 12-storey Tropicana City Office Tower, for a total purchase consideration of MYR540 million.

Tropicana City Mall is a four-storey shopping complex in Petaling Jaya with four levels of car park comprising of 1,759 car park bays. Complementing the development is a 12-storey office building known as Tropicana City office tower. The mall has a net lettable area of 448,248 square feet and started operations in December 2008. The committed occupancy rate for the mall stands at 89.2% as at Jan 2015 while the office tower is fully occupied.

The placement seeks to raise gross proceeds of up to MYR395.5 million and will increase CMMT’s fund size from 2,290,370,640 units to 2,589,970,640 units. Should the placement be taken to its maximum number of proposed units, it will represent a dilution of about 13%.

A price for the proposed placement has yet to be decided. Units of CMMT are currently listed on the Bursa Malaysia at MYR1.49.

CapitaMalls Malaysia Trust property, Plaza Gurney
CapitaMalls Malaysia Trust property, Plaza Gurney

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.