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CapitaLand to sell The Star Vista to Rock Productions for S$296m

CAPITALAND on Wednesday said that it will sell the The Star Vista for S$296 million to Rock Productions, the business arm of New Creation Church (NCC).

Based on the latest independent valuation, The Star Vista was valued at S$262 million as at June 30, 2019.

The divestment is targeted to be completed by the end of the year and is expected to generate for CapitaLand net proceeds of approximately S$145 million and a net gain of approximately S$32 million. 

"The divestment of The Star Vista is in line with CapitaLand's active and disciplined asset recycling strategy," said Jason Leow, president of CapitaLand Group (Singapore & International).

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Year to date, CapitaLand has divested close to S$5.7 billion worth of assets, exceeding its annual target divestment of S$3 billion. The proceeds from these divestments will "enhance CapitaLand's financial flexibility to seize new growth opportunities", said Mr Leow. 

Upon completion of this transaction, CapitaLand will own 19 malls, including one under development, in Singapore.

Rock Productions owns The Star Performing Arts Centre (PAC) that is co-located with The Star Vista. 

NCC council chairman Yong Chee Ram said in a statement: "Given that The Star Vista and The Star PAC are inextricably linked, our immediate objective of acquiring The Star Vista is both to protect the interest of the church and to preserve the good experience for all who come to The Star PAC."

He noted that The Star Vista is expected to generate "healthy returns" for Rock Productions. The group is also exploring the possibility of having CapitaLand continue operating and managing the retail mall on its behalf.

"Our experience with CapitaLand as the project manager for the development of The Star PAC, and as the owner and operator of The Star Vista, has been positive over the years," Mr Yong said.

Located in Buona Vista, The Star Vista is part of a 15-storey integrated development which also includes a 5,000-seat auditorium. Opened in 2012, the mall comprises three levels of retail space with a net lettable area of about 162,500 square feet. The mall registered an occupancy of 95 per cent as at June 30, 2019.