CapitaLand sells stake in mall owner for $1.71b

It expects to gain net proceeds of $660m and a net gain of $75m.

CapitaLand sold its stake in a company that holds 20 retail assets in China for about $1.71b.

According to a press release, each mall has an average gross floor area (GFA), excluding car park, of about 40,000 sqm. They are spread across 19 cities, of which 14 are noncore cities where CapitaLand has a single mall in each.

The transaction is expected to be completed in the second quarter.

CapitaLand expects to gain net proceeds of $660m and a net gain of $75m.

"This round of mall portfolio reconstitution follows CapitaLand’s divestment of CapitaMall Kunshan in the Chinese city of Kunshan last month, and the formation of a joint venture between CapitaLand and CapitaLand Retail China Trust last November to acquire Rock Square," the company said.

Post-divestment, CapitaLand’s shopping mall network in China will comprise 491 malls, of which 45 are located in first- and second-tier cities.

More than half of the malls are the retail component of integrated developments.