CapitaLand Investment Limited to divest Queensbay Mall in Malaysia for $300.3m

The value represents a premium of 3.8% to CLI’s valuation in December 2021.

CapitaLand Investment Limited (CLI) has entered an agreement with its sponsored real estate investment trust, CapitaLand Malaysia Trust (CLMT) to divest its entire interest in Queensbay Mall, Penang, Malaysia for RM990.50m ($300.3m).

CLI owns 91.8% of the total strata floor area of retail parcels in Queensbay Mall.

In a bourse filing, CLI said the agreed value represents a premium of 3.8% to CLI’s valuation in December 2021. 

Upon the divestment’s expected completion in Q123, CLI will be able to receive proceeds of about RM987.0m ($299.2m) and realise an estimated gain of RM59.3m ($18.0m). 

In support of CLMT, CLI said it plans to take up its pro-rata entitlement for the proposed private placement included as part of the funding for CLMT to acquire Queensbay Mall.  As of 3 November, CLI had a deemed interest of approximately 39.3% in CLMT.