CapitaLand Retail China (CRCT) has entered into arrangements to divest CapitaMall Minzhongleyuan.
As reported by REITsWeek since July 2019, the asset has been underperforming in terms of its occupancy, and has been widely anticipated to be a target of a divestment by the REIT.
“The property was facing operational challenges in the past few years due to the changes in its environment, including roadworks in its surroundings and resettlement in its immediate catchment”, said CRCT in a statement on the divestment.
“Given its relatively small size, the upside of the property is limited and the divestment allows the manager to exit this non-core asset and focus on CRCT’s larger core portfolio”, it added.
CapitaMall Minzhongleyuan will be divested via equity transfer agreements with an aggregate consideration of RMB258 million (SGD52.6 million).
The REIT’s full announcement on the transaction can be viewed here.
CRCT was last done on the SGX at SGD1.43, which implies a distribution yield of 4.2% according to data compiled on the Singapore REITs table.