Property developer CapitaLand has agreed to sell The Star Vista, a shopping mall in Singapore, for S$296 million ($217 million), according to an announcement on Wednesday.
The Star Vista is a part of a 15-storey integrated development located next to Buona Vista MRT Interchange in Singapore. The shopping mall first opened in September 2012 and had a 95 per cent occupancy rate as at 30 June 2019.
The buyer is Rock Productions, the owner of The Star Performing Arts Center that is co-located with the shopping mall. The transaction is expected to be completed by the end of this calendar year.
The agreed sale value is higher than Star Vista’s value as at 30 June 2019 of around S$262 million, CapitaLand said. The sale is expected to generate around S$145 million of net proceeds and around $32 million of net gain for the developer.
The divestment of the shopping mall is in line with CapitaLand’s asset recycling strategy, said CapitaLand Group Singapore and International president Jason Leow.
Following the completion of The Star Vista divestment, CapitaLand will own a total of 19 shopping malls, including one under development in Singapore.
This year, the property developer has divested almost S$5.7 billion of assets, exceeding the company’s annual divestment target of S$3 billion.
In June, CapitaLand announced its plan to divest three Chinese malls to CapitaLand Retail China Trust (CRCT) for 2.96 billion yuan ($427 million). This month, it said it will sell a total of 30 business parks located in the USA to Ascendas Real Estate Investment Trust for S$1.66 billion ($1.22 billion).
As at 30 September 2019, CapitaLand owned and managed a global portfolio worth
S$131.7 billion. The company manages eight listed real estate investment trusts (REITs) and business trusts as well as over 20 private funds.
CapitaLand’s REITs and business trusts include Ascendas Reit, CapitaLand Commercial Trust, Ascott Residence Trust, CapitaLand Retail China Trust, Ascendas India Trust, CapitaLand Malaysia Mall Trust and Ascendas Hospitality Trust.