Dasin Retail Trust completes S$274.8m acquisition of shopping mall in China

MAINBOARD-LISTED Dasin Retail Trust on Friday said it has completed its acquisition of Doumen Metro Mall in China, costing a total of around S$274.8 million.

Following the move, the trust owns all the equity interests of Jiaxin Commercial Holdings (Doumen Holdco), the trustee-manager said in a regulatory update.

The S$274.8 million amount comprises a purchase price of S$61.3 million; a repayment of existing indebtedness of Doumen Holdco and its subsidiaries of S$201.2 million; some S$10.3 million in professional and other fees and expenses in connection with the acquisition; and an acquisition fee of around S$2 million paid in units to the trustee-manager.

Dasin Retail Trust will also take over a lease agreement with interested party Zhuhai Doumen Xinxuan Food Services (Doumen Xinxuan), with relates to the leasing of some 4,064 square metres of retail space in Doumen Metro-Mall for a term of 12 years from Aug 16, 2018.

Rental and associated fees from the Doumen Xinxuan lease, along with fees payable and expenses to be reimbursed, will be S$13 million. This is approximately 1.7 per cent of Dasin Retail Trust's audited net tangible assets as at Dec 31, 2018, the trustee-manager said.

Separately, the property's rental management company Zhuhai Doumen Dasin Metro-Mall Commercial Management Co, also a unit of Doumen Holdco, has entered into property management and commercial management agreements with Zhongshan Jixin Property Management Co, Zhuhai Branch and Zhongshan Commercial Property Management Co, Zhuhai Branch - respectively the property manager and commercial manager.

The terms of these agreements are similar to existing property management and commercial management agreements entered into by Dasin Retail Trust with the same parties regarding four properties in the trust's portfolio.