Sembawang Shopping Centre (Photo: CapitaLand Mall Trust)

Singapore-listed retail REIT, CapitaLand Mall Trust, has entered into an agreement to sell Sembawang Shopping Centre to a joint venture between Lian Beng Group Ltd and Apricot Capital Pte Ltd for SGD248 million (USD189 million).

This consideration represents a significant premium, and is almost twice the property’s valuation of SGD126 million as appraised in December 2017.

Accordingly, the REIT is expected to generate net proceeds of about SGD245.6 million, and a net gain of about SGD119.6 million (USD90 million) from the sale.

Sembawang Shopping Centre was acquired by CapitaLand Mall Trust in 2005, and re-opened to shoppers in 2008.

The property comprises four levels of retail space with a net lettable area of 143,631 square feet, and features a committed occupancy of 99.4% as at 31 December 2017.

“The divestment of Sembawang Shopping Centre is in line with our portfolio management strategy of maximising returns for our unitholders”, said Tony Tan, CEO of the REIT’s manager.

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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.