CapitaLand divests 70% stake in SG’s Westgate for $291.6m

Westgate in Singapore. Source: CapitaLand.

Singapore-headquartered real estate company CapitaLand Limited will be selling 70 percent of its stake in Infinity Mall Trust (IMT) that holds Westgate, a retail and office development in Singapore’s Jurong Lake District for S$397.6 million ($291.6m), the company announced.

The stake will be divested to HSBC Institutional Trust Services (Singapore) Limited, the trustee of CapitaLand Mall Trust (CMT).

“The divestment of our stake in Westgate unlocks the value of our investment and is in line with our proactive efforts to reconstitute our portfolio for the benefit of our shareholders,” said Ronald Tay, CEO of CapitaLand in Singapore, Malaysia and Indonesia.

The sale will see CapitaLand get a net gain of about S$99.2 million ($73 million) and the deal was based on Westgate’s total market value at S$1.13 billion ($829 million).

The deal is expected to be completed by the fourth quarter of 2018.

The five-year-old Westgate is developed by CapitaLand and CMT and currently has an occupancy rate of 98 percent. The property is among CapitaLand’s more than $68 billion worth of global portfolio comprising integrated developments, shopping malls, serviced residences, offices, homes, real estate development trusts and funds.

Meanwhile, the government of Singapore is also planning to transform the Jurong Lake District into Singapore’s second central business district and CapitaLand is confident as the largest mall owner-operator about the underlying strengths of Singapore’s retail market.

“This is another of CapitaLand’s capital recycling actions which enables us to maintain a robust balance sheet while growing our assets under management.  The divestment of Westgate to CMT allows us to realise the property’s investment value, thus enhancing our financial flexibility as we redeploy our capital into higher yielding investments.

“Having achieved our annual capital recycling goal of S$3 billion ($2.2 billion) in 1H 2018, we continue to actively seek opportunities to reconstitute our portfolio.  Within the last three months, we have announced acquisition of three sites – one in Singapore and two in China – valued at a total of S$1.65 billion ($1.21 billion) as we step up momentum in replenishing our land bank.,” said Lim Ming Yan, president & group CEO of CapitaLand Group.

In August, CapitaLand Limited completed acquisitions including a $565.5 million for Sengkang Central, a residential and commercial development, handled together with its joint venture partner City Developments Limited. In the past three months, it announced S$1.65 billion ($1.2 billion) worth of acquisitions of three sites in China and Singapore.

The Group’s coverage spans across over 150 cities in 30 countries, with the core markets being Singapore and China.

Also Read:

CapitaLand-CDL JV acquires prime site in SG’s Sengkang Central for $565m

CapitaLand REIT forays into Europe with $420m Frankfurt property acquisition

CapitaLand acquires Singapore’s Pearl Bank Apartments for $550m

 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.