CRCT sells interest in company holding CapitaMall Erqi for $165.2m

It would allow the company to avoid downtime from refurbishing the 15-year-old mall.

CapitaLand Retail China Trust (CRCT) is divesting its entire equity interest in the company holding CapitaMall Erqi for a sale consideration of about $165.2m (RMB850.9m), according to an announcement.

The trust entered into a conditional equity interests transfer agreement in selling CapitaRetail Henan Zhongzhou Real Estate to an unrelated third party, through its wholly owned subsidiary, CapitaRetail China Investments (B) Alpha.

The company aims to use the net proceeds from the divestment to repay debt, finance any capital expenditure and asset enhancement works, capital distribution, fund new acquisitions, and/or to finance general corporate and working capital requirements.

Further, it would allow CRCT to avoid refurbishment downtime and major capital expenditure, as the building has already been in operation for more than 15 years.

The retail mall has seven levels located in the heart of Zhengzhou’s shopping precinct in Henan. It has a gross floor area (GFA) of 92,355.85 sqm, including above-ground floor area of 77,108.47 sqm and underground floor area of 15,247.38 sqm.

The sale consideration was negotiated on a willing buyer and willing seller basis, after taking into account its agreed interest price $150.8m (RMB777m). The independent valuation of the Property as of 31 December 2019 is $125.2m (RMB645.m).

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia