CMT buys Clarke Quay from CapitaMalls Asia for S$268m

CMT buys Clarke Quay from CapitaMalls Asia for S$268m

By Jonathan Peeris

SINGAPORE: CapitaMall Trust (CMT) has acquired riverfront development Clarke Quay from sister company CapitaMalls Asia for S$268 million.

CMT said it has sufficient financial flexibility and capacity to fund the transaction, which is targeted for completion by July 2010.

Assuming the transaction is fully funded by debt, CMT’s gearing would be 33.1 per cent - still within its target range of 30 to 35 per cent.

CMT chairman James Koh said the acquisition will allow CMT’s unitholders to capitalise on the growing lifestyle and entertainment demand in Singapore.

It will increase CMT’s asset size from S$7.4 billion as at December last year to S$7.6 billion.

As CapitaMalls Asia is a controlling unitholder of CMT, the acquisition is considered to be an interested party transaction (IPT) under SGX regulations.

As the IPT exceeds 5 per cent of CMT’s latest audited net tangible assets, the acquisition is subject to the approval of CMT’s unitholders at an extraordinary general meeting, which will be held at an appropriate time.

Two independent valuations of the property have been obtained from property consultancies CB Richard Ellis and Knight Frank, in line with the rules. - CNA/ms

 
Source : Channel NewsAsia - 10 February 2010

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