Malaysia-listed CapitaLand Malaysia Trust (CLMT) has agreed to buy a RMB990.5m (€210m) shopping mall in the island state of Penang from its sponsor, CapitaLand Investment (CLI).

The asset is Queensbay Mall, and the deal has been struck at a premium of 3.8% to CLI’s December 2021 valuation.

CLI, which holds 39.3% of CLMT securities, intends to take up its pro-rata entitlement for the proposed private placement – included as part of the funding for CLMT– to acquire Queensbay Mall.

Jonathan Yap, CEO in charge of listed funds at CLI, said: “As sponsor of and the largest unitholder in CLMT, CLI is committed to support CLMT’s growth by providing a robust pipeline of attractive assets and participating in its equity fundraising.”

Yap said the proposed divestment of the mall represented a continuation of CLI’s strategy to unlock value by converting balance sheet assets into funds under management that generate recurring fee-related earnings.

In the year to date, including this transaction, CLI has announced gross divestments of about S$2.7bn (€1.9bn).

To read the latest edition of the latest IPE Real Assets magazine click here.