CapitaLand Mall Trust's Rivervale Mall that has now been divested (Photo: CapitaLand Mall Trust)

Singapore-listed retail REIT, CapitaLand Mall Trust (SGX:C38U), announced on 15 December that it has completed the divestment of Rivervale Mall.

The three-storey property was sold to a private equity fund managed by AEW Asia for SGD190.5 million. Rivervale Mall has a net lettable area of 81,159 square feet and is 100% occupied.

CapitaLand Mall Trust first announced in October 2015 that it was divesting the property that is located in Sengkang. “The optimal option for Rivervale Mall after our evaluation was a sale of the asset, as it would unlock the highest value for our unitholders”, said Wilson Tan, CEO of the REIT’s manager in a statement then.

“As Rivervale Mall only makes up about 1% of CapitaLand Mall Trust’s total deposited property value, its divestment presents minimal impact to [the REIT’s]financial performance and distribution per unit. The net sale proceeds of about SGD188.0 million will enhance CapitaLand Mall Trust’s financial flexibility”, added Tan.

With the divestment, CapitaLand Mall Trust now has a portfolio of 16 operational retail properties in Singapore.

Units of CapitaLand Mall Trust closed about 0.3% lower from its previous finish on the Singapore Exchange to end at SGD1.86.

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.