CapitaLand to divest Star Vista property for S$296 million

Top of the CapitaLand building in Singapore’s central business district (CBD); taken September 2018.Top of the CapitaLand building in Singapore’s central business district (CBD); taken September 2018.

CapitaLand entered a deal to sell The Star Vista mall to Rock Productions, which owns The Star Performing Arts Centre in the same development, for S$296 million, the property developer said in a filing to SGX Wednesday.

The Star Vista was valued at S$262 million at end-June, in its latest independent valuation, the filing said.

The property, located next to the Buona Vista MRT interchange, is part of a 15-storey integrated development which includes a 5,000 seat auditorium, CapitaLand said. The mall, which opened in 2012, has three levels of retail space and an occupancy of 95 percent as of end-June, the company said.

The deal, which is expected to be completed by end-2019, is expected to generate net proceeds of around S$145 million and a net gain of around S$32 million for CapitaLand, the company said.

“The divestment of The Star Vista is in line with CapitaLand’s active and disciplined asset recycling strategy,” Jason Leow, president of Singapore and international for CapitaLand, said in the statement. “Year to date, CapitaLand has divested close to S$5.7 billion worth of assets, exceeding our annual target divestment of S$3 billion. The proceeds from these divestments will enhance CapitaLand’s financial flexibility to seize new growth opportunities.”

After the deal is completed, CapitaLand will own 19 malls, including one under development, in Singapore, the filing said.