CMA to divest Beijing asset for $367.5m

CRCT said to exercise its call option.

According to OCBC Investment Research, CMA announced that CRCT has exercised its call option to acquire Grand Canyon Mall in Beijing. To recap, this divestment was set in motion in Jul 13 when a conditional call option was agreed upon between both parties as CMA successfully tendered for the asset.

The mall is expected to be divested at cost price at ~RMB1.82b (S$367.5m), or ~RMB26k (S$5,249) psm based on GFA (excluding the car park). The mall has been valued at RMB1.83b as at 15 Apr 2013 by CBRE. The current occupancy (as of Apr 2013) is 92.7% with an annualized net property income (NPI) yield of about 3.5%, based on the divestment price.