CRCT To Acquire Five Business Park Properties And The Remaining 49% Interest In Rock Square
November 6, 2020 – CapitaLand Retail China Trust Management Limited, as the manager of CapitaLand Retail China Trust (CRCT), announced the proposed acquisition of the interests in the companies which hold five business park properties in the provincial cities of Suzhou, Xi’an and Hangzhou, China. The manager is also buying the balance 49% interest in the company that indirectly holds Rock Square in Guangzhou, China from related parties of CRCT.
This follows the recent expansion of CRCT’s investment mandate to cover multi-assets that are used primarily for retail, office and industrial use, including business parks, logistics facilities, data centres and integrated developments.
The acquisition is based on an agreed property value of RMB4,945.0 million (approximately S$1,005.5 million), with an implied Net Property Income (NPI) yield of 5.8%.
The agreed property value represents a discount of approximately 1.3% and 1.4% to the valuations by independent valuers appointed by HSBC Institutional Trust Services (Singapore) Limited (as trustee of CRCT) and the manager respectively. CRCT’s total acquisition cost is estimated at approximately S$822.4 million, subject to post-completion adjustments.
CRCT intends to finance the acquisition through an optimal mix of debt, equity and hybrid securities. This will result in distribution per unit accretion. The acquisition, which is conditional upon the approval of CRCT’s independent unitholders at an extraordinary general meeting, is expected to be completed by Q1 2021.
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