CapitaLand Mall Trust sells Rivervale Mall in Sengkang for $190.5 million

CapitaLand Mall Trust has sold Rivervale Mall to a private equity fund managed by AEW Asia for $190.5 million.
CapitaLand Mall Trust has sold Rivervale Mall to a private equity fund managed by AEW Asia for $190.5 million. PHOTO: ST FILE

SINGAPORE - CapitaLand Mall Trust (CMT) has agreed to sell its Sengkang mall to a private equity fund managed by AEW Asia for $190.5 million.

The 99-year-leasehold Rivervale Mall has a remaining lease of about 81 years.

Completed in 2001, the three-storey shopping mall with a net lettable area of 81,159 square feet.

The mall had a committed occupancy of 100 per cent as at Sept 30.

Its major tenants include NTUC FairPrice, Daiso, McDonald's and United Overseas Bank.

Based on the latest independent valuation as at June 30, the property is valued at $116 million.

CMT will realise a gain of about $72 million from the sale of Rivervale Mall after taking into account the divestment fee and other divestment related expenses.

"The optimal option for Rivervale Mall after our evaluation was a sale of the asset, as it would unlock the highest value for our unitholders," said Mr Wilson Tan, chief executive of the Reit manager.

"As Rivervale Mall only makes up about 1% of CMT's total deposited property value, its divestment presents minimal impact to CMT's financial performance and distribution per unit. The net sale proceeds of about S$188.0 million will enhance CMT's financial flexibility."

The sale of Rivervale Mall is expected to be completed on Dec 15.

Following this, CMT will own a portfolio of 16 operational shopping malls in Singapore.