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CapitaLand to buy Queensbay Mall in Penang for $210.7 million

(Source: Queensbay Mall)

CapitaLand Malaysia Trust (CLMT) is acquiring 91.8 per cent of the strata floor area of retail spaces in Penang shopping complex Queensbay Mall for $210.7 million, expanding its presence in northern Malaysia. 

Opening its doors to the public in 2006, Queensbay mall is one of the largest shopping malls on the island with a gross build of 2.5 million sqft and more than 883,111sqft of net lettable area. The building comprises eight storeys with five floors of retail space, and car parks. 

The deal represented a discount of approximately 1 per cent to the independent valuation of $212.6 million commissioned by the trustee. The acquisition is expected to be completed by the first quarter of next year. 

“As Malaysia emerges from the pandemic, this is an opportune time for CLMT to expand its portfolio of shopping malls and ride on the recovery of the country’s retail sector,” said Lui Chong Chee, chairman of CapitaLand Malaysia Reit Management (CMRM). 

“The proposed acquisition of Queensbay Mall will deepen CLMT’s presence in Penang, thus strengthening its foothold in the northern region of Malaysia, where it already owns Gurney Plaza and is targeting to complete the acquisition of its first logistics property.”

CEO of CMRM, Tan Choon Siang, said the mall welcomes an average of 1.1 million shoppers every month. 

“Post-acquisition of Queensbay Mall and the logistics property in Sungai Jawi, Penang, CLMT will have seven properties in its enlarged portfolio,” Siang said. “The proposed acquisition will contribute positively to CLMT’s earnings and is expected to be yield accretive upon completion.”

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