Singapore-listed but China-focused retail landlord, Dasin Retail Trust, announced late on 16 June that it will be acquiring Shiqi Metro Mall in Zhongshan, Guangdong for a purchase consideration of RMB1.224 billion (SGD248.2 million).
The purchase consideration represents a discount of approximately 57.8% to the average appraised value of the property as at 31 March 2017 as given by two independent valuers, Savills and Colliers, said the trust.
Dasin Retail Trust has not indicated a reason as to why it has managed to secure the property with such a hefty discount in its statement on the acquisition.
Shiqi Metro Mall features a gross floor area of 119,681.95 square metres across seven storeys including two basement floors.
The property, which primarily targets the mid-income household sector in Zhongshan, features an occupancy rate of 99.9% as at 31 March 2017.
The acquisition will be funded by debt, and is expected to raise Dasin Retail Trust’s leverage to 30.8%, from 24.7%.