CMT gets new name on Nov 3 after merger; CCT Q3 DPU falls 9% to 2 cents

The merger of CapitaLand Mall Trust and CapitaLand Mall Trust became effective and binding on Oct 21, 2020. ST PHOTO: KUA CHEE SIONG

SINGAPORE (THE BUSINESS TIMES) - The trust scheme for the merger of CapitaLand Mall Trust (CMT) and CapitaLand Commercial Trust (CCT, along with an expanded investment mandate, became effective and binding on Wednesday (Oct 21).

Accordingly, CCT unitholders will receive payment of the scheme consideration - comprising 25.9 cents in cash and 0.72 new CMT units for each CCT unit held - within seven business days.

The expected date of this payment is Oct 28, under the indicative timetable for the trust scheme, said CMT's manager in a filing on Wednesday morning.

CCT is then expected to delist at 9am on Nov 3, while CMT is renamed CapitaLand Integrated Commercial Trust on the same day.

On Wednesday, CMT's manager also announced that the real estate investment trust's (Reit) expanded investment mandate has come into effect.

The expanded mandate is for the Reit to invest in commercial properties, including those used for retail and/or office purposes, located predominantly in Singapore.

A novation agreement will thus also be inked on Wednesday for the existing right of first refusal that CapitaLand Singapore had granted CCT's trustee, to be novated to CMT. The scope of properties under this right of first refusal will be expanded to cover income-producing commercial real estate in Singapore, to be consistent with CMT's expanded investment mandate.

Separately on Wednesday, CCT reported distribution per unit (DPU) fell by 9.1 per cent to two cents for its third quarter ended Sept 30, from 2.20 cents a year ago.

Gross revenue was down 8.7 per cent to $94.7 million for the quarter, from $103.8 million a year earlier.

For the quarter under review, full-quarter contribution from Main Airport Center which was acquired in September 2019, as well as higher contributions from Gallileo and CapitaGreen were offset by reduced gross revenue from the other Singapore operating properties due to asset enhancement works, lower occupancies, lower non-rental revenue and rental waivers granted to tenants in view of Covid-19, the manager said on Wednesday.

Net property income fell 9.9 per cent on the year to $73.1 million for the quarter, from $81.1 million.

Distributable income declined 8.6 per cent year on year to $77.5 million, from $84.8 million.

The distribution for the third quarter, along with a clean-up distribution for the period from July 1 to Oct 20 is expected to be paid by Nov 30, the manager said. It added that further details on the clean-up distribution will be announced on Oct 30.

CCT has suspended trading since Oct 19. Units of CMT were down one cent or 0.5 per cent at $1.91 as of 9.51am on Wednesday.

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