BHG Retail REIT is acquiring a leasehold interest in Badaling Outlets in Chenzhuang Village, Beijing for SGD455.0 million.

The property will be acquired from Chang Dingjie, who is a director of Beijing Hualian Group (BHG) Investment Holding.

Chang is currently neither an interested person of BHG Retail REIT, nor an interested party of BHG Retail REIT, said its manager on 3 December.

Badaling Outlets is valued independently by valuers at about SGD575 million.

It is 100% occupied, and will come under an entrusted management agreement with Beijing Hualian Fashion Business Consulting for a period of ten years once the acquisition is complete.

It has a weighted average lease expiry (WALE) of 0.9 years by bet lettable area (NLA), and a net property income yield of 8.7% in FY 2018.

To partially fund the acquisition, BHG Retail REIT is proposing to issue up to 260.0 million new units of BHG Retail REIT to the vendor.

The new units will be issued at either SGD0.75 per new unit, or the prevailing 10-day volume weighted average price (VWAP) from the date immediately preceding the date of issue.

BHG Retail REIT was last done on the Singapore Exchange at SGD0.695.

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.