Malaysia-listed REIT CapitaLand Malaysia Trust (CLMT) has proposed to acquire 91.8% of the strata floor area of retail parcels in Queensbay Mall for MYR990.5 million.

The asset is located in Bayan Lepas, Penang and the acquisition will be made from parties related to CapitaLand Investment Limited, the REIT’s sponsor.

The total purchase consideration represents a discount of approximately 1.0% to the independent valuation of MYR1 billion, said the REIT.

Queensbay Mall was completed in 2006 and it is 95% occupied as at October 2022.

It has a net lettable area of about 883,000 square feet.

The proposed acquisition features a property yield of 7.3%, which will increase the overall property yield of CLMT’s portfolio, said the REIT.

The proposed acquisition will be funded by a combination of bank borrowings and proceeds from a proposed private placement.

Under the placement, the REIT will issue 1031.77 new units to raise up to MYR495 million.

CapitaLand has committed to support the proposed private placement and intends to take up its pro-rata entitlement of 39.3%.

The proposed acquisition will require approvals from unitholders, and Malaysian regulators.

CLMT was last done on the Bursa Malaysia at MYR0.54.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.