CLCT divests CapitaMall Yuhuating for $146.8m

The sale is 8.8% above the floor price.

CapitaLand China Trust (CLCT) has agreed to sell CapitaMall Yuhuating to CapitaLand Commercial C-REIT (CLCR) for $146.8m (RMB813.8m), securing an 8.8% premium to the floor price and a 3.7% premium to its latest valuation.

The sale, part of CLCT’s participation in the establishment and listing of CLCR on the Shanghai Stock Exchange, values the property at an exit yield of 6.2%, based on FY2024 net property income of $9.1m (RMB50.7m).

Gross proceeds from the divestment are expected at $146.6m (RMB813.5m), with net proceeds of about $119.8m (RMB663.4m) after accounting for CLCT’s 5% subscription in CLCR’s IPO and related transaction costs.

CLCT will subscribe to 5% of CLCR’s IPO units at the final offer price of $1.03 (RMB5.718) per unit, which values the offering at $412.7m (RMB2.29b), roughly 7% above initial estimates.