KUALA LUMPUR (Feb 23): Capitaland Malaysia Trust (CLMT)’s RM990.5 million acquisition of Queensbay Mall in Penang has turned unconditional after the REIT’s unitholders voted in favour of the transaction.
Unitholders also approved a private placement of up to 1.03 billion new units to raise up to RM495.25 million to partly fund the acquisition of Queensbay Mall, according to the REIT’s filing with Bursa Malaysia on Thursday (Feb 23).
In a separate filing, CLMT also announced an advanced income distribution of 0.74 sen, with March 8 as the ex-date.
The remainder of the acquisition consideration will be funded by bank borrowings, CLMT said.
The acquisition, it said, will boost its assets under management by 25.7% to RM4.9 billion, from RM3.9 billion currently.
CLMT is buying 91.8% of the total strata floor area of retail parcels in Queensbay Mall through a related-party transaction from parties related to CapitaLand Investment Ltd (CLI).
Taking into account the acquisition fees and expenses, the total acquisition cost is RM1.03 billion and will be funded by a combination of bank borrowings and proceeds from a private placement.
CLI, which has 39% stake in CLMT, intends to take up its pro-rata entitlement in the private placement, which will be included as part of the funding for CLMT to acquire Queensbay Mall.
Units of CLMT closed one sen or 1.8% lower at 53 sen on Thursday, valuing the REIT at RM1.17 billion.