CLMT to sell 3 Damansara office tower to Lagenda Properties for RM52m

• Net proceeds of RM50.5 million from the sale will be used to repay borrowings, which will reduce CLMT’s gearing to 43.5%, from 44.1%. 

PETALING JAYA (Sept 5): CapitaLand M Trust (CLMT) will see the disposal of 3 Damansara Office Tower (pictured), which it acquired in 2015, to Lagenda Properties Bhd for RM52 million.

The sale consideration is at a 4% premium to its valuation of RM50 million at end-July, said CapitaLand M REIT Management Sdn Bhd (CMRM) in a statement.

Net proceeds of RM50.5 million from the sale will be used to repay borrowings, which will reduce CLMT’s gearing to 43.5%, from 44.1%, it added.

This will help the entity in pursuing “higher yielding opportunities in the new economy sectors”, said CMRM CEO Tan Choon Siang.

“The Proposed Divestment is expected to be DPU (dividend per unit)-accretive and strengthen CLMT’s balance sheet. We will continue to actively review our portfolio to deliver greater income stability and optimise returns for unitholders,” Tan said.

The proposed divestment is expected to complete by 1Q2024.

CLMT owns eight other properties, comprising six retail and two logistics properties strategically located across three key urban centres in Penang, Klang Valley and Pahang.

CLMT units settled one sen or 1.82% lower at 54 sen, giving it a market capitalisation of RM1.44 billion.

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