CRCT completes acquisition of companies holding stakes in three Chinese retail malls

CapitaLand now has an interest of approximately 34.4% in the divestment companies.

CapitaLand Retail China Trust Management, the manager of CapitaLand Retail China Trust, has completed the full acquisition of shares in companies that hold three retail malls in China, according to an SGX filing.

CapitaMalls Hunan Commercial Property Co. (CHCP), which holds CapitaMall Yuhuating, has ceased to be a subsidiary CapitaLand; and CapitaRetail Harbin Shangdu Real Estate Co. (CHSRE) and Beijing Hualian Harbin Real Estate Development Co. (BHHRE), which hold CapitaMall Xuefu and CapitaMall Aidemengdun, respectively, have ceased to be associated companies of the group. CapitaLand will continue to have an interest in CHCP, CHSRE and BHHRE through its interest in CRCT.

The group now has an interest of approximately 34.4% in the divestment companies.

Last June, it was reported that the sale could generate $239.9m and a net gain of about $37.6m for CapitaLand.

CapitaLand Retail China Trust Management added that approximately $279.4m, which is from the gross proceeds of its equity fund raising, will be utilised to finance part of the total acquisition to pay the estimated fees and expenses.

ERRATUM: An earlier version of this story, published on 02 September, said that a CapitaLand unit sold its stake in three Chinese retail malls as the headline. The story has been amended on 05 September to correctly reflect the information in the SGX filing.