CLCT to subscribe for 5% of units in CapitaLand Commercial C-REIT Shanghai IPO

The final IPO price was set at $1.03 (RMB5.718) per unit.

CapitaLand China Trust (CLCT) will subscribe to 5% of the units in CapitaLand Commercial C-REIT (CLCR) as part of its IPO on the Shanghai Stock Exchange, after receiving approval from the China Securities Regulatory Commission on 27 August.

The subscription was confirmed through a placement agreement signed on 28 August.

The final IPO price was set at $1.03 (RMB5.718) per unit, valuing the offering at $412.7m (RMB2.29b), about 7% above earlier estimates.

As part of the transaction, CLCT will sell CapitaMall Yuhuating to CLCR for $146.8m (RMB813.8m). The sale price represents an 8.8% premium to the floor price and a 3.7% premium to the mall’s 2024 valuation, with an exit yield of 6.2%.

CLCT expects gross divestment proceeds of $146.6m (RMB813.5m). After accounting for the subscription and transaction costs, net proceeds are estimated at $119.8m (RMB663.4m).

Proceeds will be partly used for the IPO subscription and partly to reduce debt. CLCT projects a net distribution yield of 4.07% from its CLCR stake.