CapitaMall Trust to acquire Iluma for $295mn

Iluma has a net lettable area of 185,190 sq ft and is connected by an overhead link-bridge to the second storey of Bugis Junction.

According to CapitaMall Trust, CMT, through its trustree, HSBC Institutional Trust Services (Singapore) Limited, has entered into a sale and purchase agreement to acquire Iluma for $295 million from Jack Investment Pte Ltd.

Iluma is a new shopping mall in Singapore located at Victoria Street opposite the populat Bugis Junction, one of CMT's existing properties.

Mr James Koh Cher Siang, Chairman of CMTML, said, "Iluma is strategically located in the Bugis precinct, which is the heart of Singapore's Arts, Culture, Learning and Entertainment hub. With this property, CMT will have five prime retail assets in the downtown core, the others being Raffles City Singapore, Plaza Singapura, Bugis Junction and Funanc DigitaLife Mall. Our downdtown malls benefit from the strong increase in tourist arrivals in Singapore, and the addition of Ilumma will allow CMT to further tap on this growth in tourist arrivals in the coming years. With the acquisition of Iluma, CMT's portfolio of shopping malls increases to 16, further strengthening our market leadership as Singapore's largest REIT."

Mr Simon Ho, CEO of CMTML, said, "The acquisition of Iluma is existing as we see a lot of opportunities to integrate it with our Bugis Junction. The two malls are already connected by an overhead link-bridge and we see scope to create an enlarged and seamless shopping destination that will appeal to locals and tourists. Bugis Junction, with its direct connectivity to the Bugis MRT station and central location, already attracts strong shopper traffic of more than 3.2 million per month. The integration of Iluma with Bugis Junction will create a combined shopping destination with net lettable area of more than 606,000 square feet, about the size of Ion Orchard. The combined offerings of the integrated mall will further strengthen its overall attractiveness to shoppers."

“At the price of S$295 million and based on the current rental rates, occupancy of 83.7% and entry yield of just under 4.0%, the acquisition is yield accretive to our current portfolio. With its prime location next to Bugis MRT station and planned integration with our Bugis Junction, we are confident that the occupancy of Iluma can match Bugis Junction’s occupancy of 100.0% and its property yield can be boosted to be in line with the other malls in our portfolio.”