Tuesday, September 12, 2023

CapitaLand M Trust to sell 3 Damansara office tower for RM52 mln to Lagenda Properties

 By NST Property/Sharen Kaur - September 6, 2023 


sharen@nst.com.my

KUALA LUMPUR: CapitaLand M Trust (CLMT) has agreed to sell its 3 Damansara office towers in Petaling Jaya, Selangor, to affordable housing developer Lagenda Properties Bhd for RM52 million.

  According to the stock exchange, the sale price reflects a four per cent premium over its end-of-July valuation of RM50 million.

  The proposed divestment is scheduled to be completed in the first quarter of 2024.

  CLMT said that the net proceeds of the sale will be used to repay borrowings, reducing its gearing to 43.5 percent from 44.1 percent.

  "This will help the entity pursue higher-yielding opportunities in the new economic sectors", said CapitaMalls Malaysia REIT Management Sdn Bhd's (CMRM) chief executive officer, Tan Choon Siang.

  CMRM, the manager of CLMT, acquired Tropicana City Mall and Tropicana City Office Tower from Tropicana Corp Berhad's unit, Tropicana City Sdn Bhd, for a total of RM540 million in 2015.   Including the acquisition fee and expenses, the total acquisition cost came to about RM565 million.

  Tan said that the proposed disposal will be DPU (dividend per unit)-accretive and will enhance CLMT's balance sheet. 

  "We will continue to actively review our portfolio to deliver greater income stability and optimise returns for unitholders," Tan said.

  CLMT also has eight other properties in Penang, Klang Valley, and Pahang, including six retail and two logistics properties.

Source: https://www.nst.com.my/property/2023/09/951598/capitaland-m-trust-sell-3-damansara-office-tower-rm52-mln-lagenda-properties

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