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Tue, Dec 01, 2020 – 9:04 am
CAPITALAND has sold three shopping malls in Japan and an office building in South Korea for a total of S $ 448.7 million, as part of its ongoing portfolio rebuilding strategy, it said Tuesday morning in a statement from change.
It also announced that it has made its first foray into the Japanese logistics sector, entering into a joint venture with Mitsui & Co Real Estate, with CapitaLand as the majority partner, to develop and operate a logistics project in Greater Tokyo.
Properties sold in Japan are La Park Mizue and Vivit Minami-Funabashi in Greater Tokyo, as well as CO-OP Kobe Nishinomiya Higashi in Greater Osaka, which sold for a total of 21.99 billion yen (S $ 283.6 millions).
It also sold ICON Yeoksam in Seoul for 142.2 billion won (S $ 165.1 million) in August this year. The office building was carried out through a private fund, Ascendas Korea Office Private Real Estate Investment Trust (Reit) 5. CapitaLand continues to be ICON Yeoksam’s asset manager and will continue to receive fee income.
CapitaLand said the divestitures were made above valuation and the buyers are unrelated third parties. Following the divestment, CapitaLand will retain S $ 3.8 billion of assets under management (AUM) in Japan and S $ 2 billion of AUM in Korea.
With the divestitures, the total gross value of the divestitures of CapitaLand and its Real Estate Investment Trusts (Reits) would be S $ 3.02 billion, crossing its annual goal of recycling S $ 3 billion of equity.
CapitaLand and its Reits have invested more than S $ 3.3 billion in new assets as of the end of November.
“The divestment of these mature office and shopping center assets is part of CapitaLand’s capital recycling strategy to unlock value by reinvesting capital in new growth opportunities such as the logistics sector in Japan,” said Jason Leow, President of Singapore and International, CapitaLand Group.
“By reducing our exposure to the Japanese retail sector and leveraging our logistics expertise in markets such as Singapore, Australia and the UK to expand into the New Economy sector in Japan, we are responding quickly to changing market trends and behaviors. of consumers, positioning CapitaLand for future growth, “he added.
CapitaLand’s new logistics company in Japan is close to central Tokyo and is expected to be completed in the fourth quarter of 2022. The four-story logistics facility will have a gross area of approximately 24,000 square meters.
Gerald Yong, CEO of CapitaLand International, said that the logistics sector in Japan presents “significant opportunities” for CapitaLand.
“The global pandemic has accelerated the growth of e-commerce and the logistics sector has been the main beneficiary of this trend,” Yong said. “Our goal is to achieve significant scale over time by leveraging Mitsui & Co Real Estate’s local knowledge and access to business opportunities to grow our logistics portfolio in Japan.”
CapitaLand shares closed at S $ 3.13 on Monday, down S $ 0.01 or 0.3%.
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