BHG Retail Real Estate Investment Trust (Reit) has proposed to buy the Badaling Outlets mall in Beijing for $455 million.

It would be the Reit's first outlet mall, said the Reit's manager yesterday.

The mall was completed in 2014 and consists of 14 buildings over a gross floor area of around 58,348 sq m, with a net lettable area of about 38,797 sq m.

The mall's land use right expires in 2037.

The total acquisition cost of $471.9 million comprises the purchase price, payable partly in cash of $260 million and by issuing up to 260 million new units in BHG Retail Reit to the vendor.

Estimated professional and other expenses will be about $16.9 million.

Unit holder approval at an extraordinary general meeting is required for the purchase, the issuing of the new units and other matters.

BHG Retail Reit units last traded flat at 69.5 cents last Friday.

THE BUSINESS TIMES