Singapore-listed CapitaLand Retail China Trust announced on 3 October that it has completed the acquisition of a property known as Galleria, in Chengdu - the provincial capital of Sichuan.
The REIT first announced in August 2016 that it was acquiring the six-storey mall for RMB1,500 million (USD225 million).
The mall has a current net property income (NPI) yield of about 5.4%, and the acquisition is expected to be distribution per unit (DPU) accretive, said the retail REIT in its statement then.
Galleria currently features a net lettable area (NLA) of 34,736 square metres is 100% occupied with 167 leases including anchor tenants H&M, Nike, Starbucks, Swarovski, and UNIQLO.
The induction was completed by acquiring all of the issued share capital in BR Spicy (HK) Limited, and its wholly owned subsidiary, Spicy (Chengdu) Limited which holds Galleria.
The issued share capital was acquired by HSBC Institutional Trust Services, in its capacity as trustee of CapitaLand Retail China Trust.
With the acquisition, the CapitaLand-sponsored REIT now has a portfolio of 11 retail properties across China.
Units of CapitaLand Retail China Trust finished the trading day about 0.6% higher from its previous close on the Singapore Exchange to end at SGD1.625.