CapitaLand Mall Trust to buy remaining 70% stake in Westgate for $789.6m

The transaction is targeted for completion by Q4 2018, depending on unitholders' approval.

CapitaLand Mall Trust (CMT) will acquire the remaining 70% of the units in Infinity Mall Trust, CMT Management Limited (CMTML) revealed. The acquisition is based on an agreed market value of Westgate at $1.12b ($2,746 per sq ft) on a 100% basis.

Including acquisition-related expenses, CMT’s total acquisition outlay is estimated at $805.5m which it will fund through debt or a combination of debt and equity funding.

According to an announcement, the transaction is eyed for completion by Q4 2018 depending on approval from unitholders.

“In view of the government’s plans to add 20,000 homes and create 100,000 new jobs in Jurong Lake District, as well as the upcoming Jurong Region Line that will connect to the Jurong East MRT station, CMT remains confident about the long-term growth prospects of the Jurong area,” CMTML chairman Richard R. Magnus commented.
Enjoying direct connectivity to both the Jurong East MRT station and bus interchange, Westgate is the retail component of an integrated retail and office development in Jurong Lake District. As of July, the property has a committed occupancy of 98.0%.

“It enables us to recycle the capital from the sale of Sembawang Shopping Centre into a newer asset with stronger growth potential at an entry yield of 4.3%, which is in line with recent market transactions,” CMTML CEO Tony Tan commented. “At S$2,746 per square foot, the acquisition price is attractive for an asset of Westgate’s quality.”