CapitaLand to list retail unit, raise S$1.57 billion

KUALA LUMPUR: Singapore's CapitaLand Ltd plans to spin off its unit, CapitaLand Retail Ltd and list it on the Singapore Exchange, and the proceeds to be raised from corporate exercise is S$1.57 billion (RM3.85 billion).

CapitaLand said in a statement to SGX on Oct 5 that CapitaLand Retail will be renamed CapitaMalls Asia Ltd. It will manage 86 retail properties with a total value of S$20.3 billion.

"CapitaLand will retain majority control in CapitaMalls Asia post listing and for the foreseeable future. It intends to offer an adequate number of shares that it holds in CapitaMalls Asia to ensure that there is sufficient liquidity in the counter," it said.

It hired JP Morgan (S.E.A.) Ltd as its sole financial adviser. JP Morgan (S.E.A.) Ltd and DBS Bank Ltd have been appointed as the joint issue managers for the proposed offering.

The geographically diversified portfolio will be across five countries and 48 cities. Total retail space will encompass about 66.5 million sq ft.

The main objectives of the corporate exercise is to enable CapitaLand Group to accelerate the growth of and extend the market leadership in its shopping mall business.

It would also unlock shareholder value by crystallising the value of CapitaLand Group’s integrated shopping mall business.

The exercise would strengthen CapitaLand’s position and increases its financial capacity to accelerate the growth of its other real estate business units.

CapitaLand said the exercise would allow it to continue participating in the strong growth of the integrated shopping mall business by maintaining a majority stake in CapitaMalls Asia.