CapitaLand's China retail unit to sell CapitaMall Wuhu after shutdown

The mall has been closed since Q3 2018 following the exit of its anchor tenant.

CapitaLand Retail China Trust (CRCT) and CapitaLand announced that their respective subsidiary and associates have entered into an agreement to divest their combined 100% interests in a company, which owns CapitaMall Wuhu, to an unrelated third party.

The transaction is based on the company’s adjusted net asset value, including its interest in CapitaMall Wuhu of $41.5m (RMB210m).

Located in Wuhu city in China’s Anhui Province, CapitaMall Wuhu is a five-storey shopping mall with a gross floor area, excluding car park, of approximately 45,000 sqm. The mall has been closed since Q3 2018, following the exit of its anchor tenant, the firms revealed in a joint statement.

“The divestment of CapitaMall Wuhu is in line with our proactive asset management strategy to optimise CRCT’s portfolio and enhance returns. As our 51% stake in CapitaMall Wuhu accounts for less than 1% of CRCT’s asset size, its sale is expected to have minimal impact on CRCT’s core business. The sale proceeds will provide CRCT with greater financial flexibility to take advantage of market opportunities,” Tan Tze Wooi, CEO of CRCT Management, said.

Proceeds from the divestment may potentially be redeployed to core assets in cities where CapitaLand enjoys scale and competitive advantage.

The divestment of CapitaMall Wuhu is expected to be completed in H2 2019. Following the divestment, CRCT’s portfolio will have 10 malls in seven Chinese cities, whilst CapitaLand’s retail network in China will comprise 51 malls in 21 cities.