CapitaLand sells 70% stake in Westgate to CMT for S$789.6m

Mall sold at 4.3% property yield, which manager says is undemanding and relatively fair

Published Mon, Aug 27, 2018 · 09:50 PM

Singapore

AS PART of its capital recycling exercise, property developer CapitaLand on Monday said that it has agreed to sell to CapitaLand Mall Trust (CMT) its 70 per cent stake in Westgate - the retail component of an integrated retail and office development in Jurong - for S$789.6 million.

This values a full 100-per-cent stake in the development at S$1.128 billion, and translates to S$2,746 per square foot (psf).

The sale will generate for CapitaLand proceeds of about S$397.6 million in cash -- comprising S$17.9 million in purchase consideration, and S$379.7 million as repayment of unitholders' loans owed by the trust holding the mall to the trustee and the vendors.

The remaining portion of S$392 million makes up 70 per cent of the bank loans owed to financial…