Malaysia Property News is a free resource website sharing Daily Property News & information about Property in Malaysia, which related to, Property Market, Property Investment, Commercial Property , Hot Properties Malaysia, Real Estate, Retail Shop, Business Park, Condominium Malaysia, Terraces & Apartment Malaysia, Houses, Residence, Resort and many more.

Thursday, June 26, 2008

CapitaLand buys 62% of Sungei Wang Plaza

PETALING JAYA: Singapore-listed CapitaLand Ltd has acquired 61.9% of Sungei Wang Plaza, a popular retail mall sited within the Bukit Bintang shopping precinct, for RM595mil.

The acquisition is the third by CapitaLand, which is planning to set up a pure-play Malaysian retail real estate investment trust (REIT) by the year-end.

StarBiz reported on May 17 that Sungei Wang was attracting the attention of investors that included CapitaLand.

In a statement yesterday, CapitaLand Retail Ltd chief executive officer Pua Seck Gun said that together with the earlier acquisitions of Gurney Plaza and Mines Shopping Fair, the three seed assets collectively amounted to an asset size of about RM2bil.

This would put CapitaLand “firmly on track to create its proposed pure-play Malaysian retail REIT by end-2008”, he said.

CapitaLand said it would pay RM595mil for 61.9% of the total retail strata area, or 510,418 sq ft, as well as car parks of Sungei Wang through an asset securitisation structure.

Under the asset securitisation structure, Sungei Wang will be held by special-purpose vehicle Vast Winners Sdn Bhd, which has issued three tranches of senior medium-term notes, namely class A, B and C, as well as a tranche of subordinated class D medium-term notes.

CapitaLand unit Gain 888 Investment Pte Ltd has fully subscribed to the subordinated class D medium-term notes in the principal amount of RM338mil.

The senior medium-term notes are fully subscribed by a Malaysian financial institution.

“Through our proactive management and by leveraging on our retail real estate management expertise, there are tenancy remixing opportunities to create significant value at Sungei Wang,” Pua said.

Sungei Wang has almost 100% occupancy and draws more than 24 million visitors a year. The 11-storey mall, built in 1977 by Tan Sri Chong Kok Lim, has over 800 retail outlets and 1,300 carparking lots.

By The Star (by Izwan Idris)

No comments: