Friday, April 20, 2007

CapitaMall buys retail mall stakes for US$192m

CapitaMall buys retail mall stakes for US$192m

SINGAPORE - CapitaMall Trust, Singapore's largest property trust by market value, said on Friday that it would pay $290.3 million (US$192 million) to buy remaining stakes in three retail malls in Singapore.

A CapitaMall statement said that it will buy the balance of 72.8 per cent of Class E Bonds in CapitaRetail Singapore Ltd, a private property fund owned by parent CapitaLand Ltd.

Together with the 27.2 per cent interest that CapitaMall had already bought since 2003, the trust will own 100 per cent of CapitaRetail, which in turn owns three shopping malls in Singapore worth $710 million.

CapitaMall said the purchase would boost its total assets to $5.4 billion, from $4.8 billion as at end December 2006, and was in line with its plans to increase its portfolio to $7.0 billion by 2009.

The trust plans to finance the acquisition initially by debt but is considering various other options for long term financing. -- REUTER

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