CapitaLand signs agreement to construct pedestrian bridge

KUALA LUMPUR (June 1): CapitaLand Malaysia Mall Trust (CMMT) has entered into an agreement with K Two Realty Holding Sdn Bhd to construct and manage a link bridge situated between Sungei Wang Plaza (SWP) and Berjaya Times Square.

The joint collaboration agreement signed between CMMT's trustee, MTrustee Bhd, and K Two requires the party to fund, plan, project manage, construct and complete the construction of a link bridge between SWP and the existing pedestrian bridge leading to Berjaya Times Square. It also includes the construction of external escalators located at the side façade.

The estimated construction cost of the project is RM8.5 million and each party is to initially contribute RM4.25 million, which shall be made in progressive payments.

"Barring any unforeseen circumstance, the project is estimated to be completed by the fourth quarter 2018," it said in the filing to Bursa Malaysia.

CMMT's contribution to the project will be solely funded by borrowings, it said. The collaboration will also not have any material effect on the earnings, net asset value and gearing of CMMT.

Upon completion of the project, SWP's management corporation has agreed to take over the control and use of the link bridge as well as the external escalators from the parties. It will also undertake the subsequent maintenance of the link bridge and the external escalators.

"Through the joint collaboration, CMMT and K Two will be able to collaborate and leverage on each other's strength and share the cost of the project in order to improve the connectivity of SWP," it said.

K Two is primarily involved in the business of investment property.

At Bursa Malaysia, CMMT's share closed down two sen or 1.32% to RM1.50, with a market capitalisation of RM3.07 billion. — theedgemarkets.com

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