<article>The latest in realty deals from Malaysia has seen <a href="http://www.capitamallsmalaysia.com/" target="_blank">CapitaMalls Malaysia Trust (CMMT)</a> acquire <a href="http://www.tropicanacitymall.com/" target="_blank">Tropicana City Mall</a> and the attached office tower, <a href="http://www.huayang.com.my/" target="_blank">Hua Yang Bhd</a> is acquiring a total of 8.04 acres of freehold land in the Penang state. Details</article>

The latest in realty deals from Malaysia has seen <a href="http://www.capitamallsmalaysia.com/" target="_blank">CapitaMalls Malaysia Trust (CMMT)</a> acquire <a href="http://www.tropicanacitymall.com/" target="_blank">Tropicana City Mall</a> and the attached office tower, <a href="http://www.huayang.com.my/" target="_blank">Hua Yang Bhd</a> is acquiring a total of 8.04 acres of freehold land in the Penang state. Details
<h2>CapitalMalls acquires Tropicana City Mall</h2>
CapitaMalls Malaysia Trust (CMMT) has acquired Tropicana City Mall and the attached office tower for MYR540 million ($150 million), having entered a conditional sale and purchase agreement with Tropicana City Sdn Bhd.
Tropicana City Sdn Bhd is the wholly-owned subsidiary of property developer Tropicana Corp Bhd.
In a filing with Bursa Malaysia, CMMT said the mall and 12-storey Tropicana City Office Tower, will be acquired but the deal did not include the residential tower of Tropicana City, the Tropics, which is also within the integrated development.
CMMT and Tropicana Corp were in talks in 2013 about the transaction but no deal was sealed.
“The manager believes that the competitive strengths of the property include its strategic location, established tenant mix and high occupancy, and expects the property to contribute positively to the future performance of CMMT,” the acquirer said in the announcement.
The disposal of the property by Tropicana Corp will reduce the property developer’s high gearing level at 71.7 per cent, according to <a href="http://www.edgeresearch.com/" target="_blank">The Edge Research</a>.
CMMT will fund the acquisition through debt or equity fund raising or both, via the issuing of new units, with the proportion of the financing to be determined later.
“This proposed acquisition will thus further expand CMMT’s portfolio in terms of both income and geographical spread, and enable CMMT to continue to deliver stable returns to our unitholders,” CMMT’s manager CapitaMalls Malaysia REIT Management Sdn Bhd (CMRM) chairman David Wong Chin Huat said.
<h2>Hua Yang acquires 8 acres Penang land for $8.6m</h2>
Hua Yang Bhd is acquiring a total of 8.04 acres of freehold land in the Penang state, for MYR31 million ($8.62 million).
Tinggian Development Sdn Bhd, a wholly-owned unit of Hua Yang, will acquire two parcels of land measuring 4.9 acres and 3.14 acres located in Seberang Prai.
Hua Yang is buying the 4.9 acre piece of land from Goldentime Project Sdn Bhd for MYR21.9 million.
The realty group said in a filing with Bursa Malaysia that it proposed to build  mixed development, consisting 720 units of service apartments and 36 units of commercial shop lots, on the 4.9 acre piece of land. The estimated gross development value (GDV) for the project is MYR242.8 million.
&#8220;The proposed acquisition is in line with the Hua Yang group’s objective to expand into mainland Penang,&#8221; it said.
The group, which has a niche in affordable housing, expects to complete the first acquisition by the first quarter of the financial year ending March 31, 2016.
Meanwhile, the acquisition of the second parcel is expected to be completed by the fourth quarter of Hua Yang’s financial year 2016.
&#8220;The second parcel will be utilised for a residential condominium with an estimated GDV of MYR70.7 million,&#8221; said the group in a statement.
The purchase of the second parcel of land was not disclosed to Bursa Malaysia as the value of the transaction was below the threshold of materiality for disclosure, local media The Edge Financial Daily reported.
Both the acquisitions will be funded by internally generated funds and/or bank borrowings.
The group currently has an undeveloped land bank of 494 acres with a potential GDV of MYR3.1 billion. Aside from looking for new development opportunities in Penang and Kota Kinabalu in Sabah, the group said the Klang Valley, Johor and Perak region will remain key focus areas for their developments.

Malaysia realty roundup: CapitaMalls, Hua Yang

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Malaysia realty roundup: CapitaMalls, Hua Yang

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