CapitaLand Retail China divests Wuhan mall, three premises for $52.6m

The company is said to be facing operational challenges in the past years.

CapitaLand Retail China has announced a deal to sell real estate in Wuhan, China for $52.6m to an unrelated third party.

It is selling its mall CapitaMall Minzhongleyuan and three sets of vacant premises to the third party, which has also agreed to pay approximately $40.8m to cover a shareholder loan and entrustment loans.

“The property was facing operational challenges in the past few years due to the changes in its environment, including roadworks in its surroundings and resettlement in its immediate catchment,” it said.

The $46.8m estimated net proceeds of the divestment may be used to repay debt, finance any capital expenditure and asset enhancement works, capital distribution, fund new acquisitions, and/or finance general corporate and working capital requirements, according to the manager.