The soon-to-be-listed CapitaLand Commercial C-REIT (CLCR) has bought a shopping mall in Changsha, in south-central China, from the unlisted CapitaLand China Trust (CLCT) for RMB813.8m (€98m).
The agreed valuation represented an 8.8% premium to two independent valuations of the asset. As part of the transaction, CapitaLand China Trust will subscribe to a 5% strategic stake in CLCR at the IPO price of RMB5.718 per unit.
Gerry Chan, CEO, CapitaLand China Trust Management Limited, the manager of CLCT, said: “CLCR offers a strategic opportunity for CLCT to enter the expanding C-REIT market.
“It provides a platform to unlock value from our mature assets, bolstering our financial flexibility to pursue income diversification and enhance portfolio quality.”
Chan said the transaction aligned with the trust’s growth strategy as a diversified, multi-asset class REIT, anchored by a broad portfolio of retail properties, business parks, and logistics parks, while CLCR would focus on retail assets.
CLCT’s investment mandate covers the Greater China region, including Hong Kong and Macau, whereas CLCR will concentrate exclusively on mainland China.
“With nearly two decades of proven track record, CLCT is well-placed to leverage this new platform and advance our strategy of building a balanced portfolio that capitalises on China’s fast-evolving consumption- and innovation-led economy,” Chan added.
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