CapitaRetail China Trust buys Xizhimen Mall for $336 million
CAPITARETAIL China Trust (CRCT), CapitaLand’s retail property business unit in Beijing, said yesterday that it was buying a shopping mall in the Chinese capital for $336 million — its first acquisition since the Reit’s listing on the Singapore Exchange last year.
The seven-storey Xizhimen Mall (picture) has a gross rentable area of 73,857 sq m and has an 87.1-per-cent occupancy rate as of Oct 11.
Based on the property price and an average occupancy rate of 88.7 per cent, Xizhimen Mall is expected to achieve a net property income yield of 5.7 per cent in forecast year 2008.
The committed occupancy rate is expected to reach close to 100 per cent in coming months.
CRCT will purchase the asset from CapitaRetail China Incubator Fund, which is 30-percent owned by CapitaLand.
Expected to be completed by January next year, the transaction will grow its portfolio asset size from the current $763.7 million of seven properties to $1.16 billion.
“With the secured and proprietary pipeline of quality assets from CapitaLand-sponsored private China retail property funds, as well as from potential direct acquisitions from the market, CRCT is on track to achieve its target portfolio size of $3 billion by 2009,” said Mr Hsuan Owyang, chairman of the trust manager.
The mall commenced operations on Sept 15 and was officially opened by Deputy Prime Minister Wong Kan Seng and Vice-Mayor of Beijing, Mr Chen Gang, last Saturday.
CRCT’s shares closed flat at $2.78 yesterday.
No comments:
Post a Comment