News

CapitaLand Commercial establishes trust to acquire Lot 1 Shoppers' Mall for S$243.8 million

Grants right of first refusal to CapitaMall Trust
Singapore, 3 September 2003 - CapitaLand Commercial Limited (CapitaLand Commercial), the commercial property business unit of CapitaLand Limited (CapitaLand), is pleased to announce that Lot 1 Trust, a single purpose trust established by CapitaLand Commercial, has today entered into a contract with Isrich Properties Pte Ltd (IPPL) to acquire Lot 1 Shoppers' Mall (Lot 1) for S$243.8 million. The completion of the acquisition is expected to be in October 2003.

Lot 1, a prime shopping mall, is strategically located in the densely populated Choa Chu Kang residential heartland which, together with the nearby Hillview, Upper Bukit Timah and Bukit Batok residential districts, has a catchment of about 400,000 people. The mall, with a total net lettable area of about 208,000 square feet, is currently 100% leased. Major anchor tenants include NTUC Fairprice, Singapore's leading supermarket chain; Seiyu Department Store, a Japanese brand name department store; Food Junction, a popular food court; Shaw Theatres Cineplex; as well as a community library.

Said Mr Kee Teck Koon, CEO of CapitaLand Commercial, "Lot 1 enjoys excellent accessibility as it is supported by a major transportation hub comprising a bus interchange, as well as MRT and LRT lines. The mall is a focal point for the residents in the Choa Chu Kang heartland, catering to their basic shopping and entertainment needs. The projected net property income is S$15.1 million for year 2004 and this translates to a property yield of about 6% based on the total acquisition cost. Going forward, we see the potential to grow the property yield through optimising the tenancy mix, an active leasing strategy and asset enhancement initiatives."

Pursuant to a right of first refusal agreement between CapitaLand Commercial and Bermuda Trust (Singapore) Limited, the trustee of CapitaMall Trust (CMT), CapitaLand Commercial has granted CMT a right of first refusal to either acquire all the units in Lot 1 Trust or to acquire Lot 1 from Lot 1 Trust.

About CapitaLand
CapitaLand is one of the largest listed property companies in Asia. Headquartered in Singapore, the multi-national company's core businesses in residential, commercial and industrial property and property-related services, such as property funds and real estate financial products, are focused in select gateway cities in China, Australia and the UK. In these countries, CapitaLand is in partnership with reputable local players and has established a management team that understands the market, business practices and socio-economic factors.

CapitaLand's hospitality businesses, in hotels and serviced residences, span more than 50 cities around the world. CapitaLand also leverages on its significant real estate asset base and market knowledge to develop fee-based products and services in Singapore and the region.