CapitaLand Malaysia divests office property for around $15m

The divestment is expected to be completed by Q1 2024.

CapitaLand Malaysia Trust (CLMT) is selling its 3 Damansara Office Tower to Lagenda Harta Sdn. Bhd., a wholly-owned subsidiary of Lagenda Properties Berhad for around $15m (RM52m).

In a disclosure, CLMT’s manager said the net proceeds from the sale after divestment costs are around $14.7m (RM50.5m) which will be used to repay CLMT’s existing borrowings.

When used, this will bring CLMT’s gearing ratio to 43.5% from 44.1%.

The Property in Petaling Jaya is a freehold and stratified asset with a total net lettable area of over 101,000 square feet. It includes a four-storey shopping mall with a car park known as 3 Damansara

“CLMT’s maiden divestment is in line with our ongoing portfolio reconstitution strategy and we have decided to monetise this non-core office asset to improve the quality of our portfolio. The proceeds from this divestment will provide us with financial flexibility to enhance our portfolio diversification efforts and pursue higher yielding opportunities in the new economy sectors,” the Manager’s CEO Tan Choon Siang said.

ALSO READ: CapitaLand Malaysia Trust’s net property income soars 51.8% YoY to $16.6m in 2Q23

“The Proposed Divestment is expected to be DPU-accretive and strengthen CLMT’s balance sheet. We will continue to actively review our portfolio to deliver greater income stability and optimise returns for Unitholders,” he added.

CLMT acquired the property in 2015 as part of the 3 Damansara Property integrated development. The sale consideration is 4% higher than the latest valuation of around $14.6m (RM50m) as of 31 July.

The proposed divestment, which will not have any material impact on CLMT’s net asset value and distribution per unit for 2023, is expected to be completed y the first quarter of 2024.

The completion of the divestment will bring CLMT’s portfolio in Malaysia to eight, of which two are logistics and six are retail properties located in Penang, Klang Valley, and Pahang.

$1 = RM3.43

Follow the link for more news on

CapitaLand Integrated Commercial Trust

Also Read

CLINT acquires 2.5 million square feet of IT buildings in India

Singapore’s outbound real estate investments in APAC dip in Q1: JLL

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit