The sale will net CLCT RMB690.7 million and give it an exit yield of 2.8%.
Proceeds from the divestment will give CLCT greater financial flexibility to pursue capital recycling and portfolio reconstitution initiatives.
"CapitaMall Shuangjing is a predominantly master-leased mall that would require significant capital outlay and planning downtime to repurpose the building and remain competitive," says Tan Tze Wooi, CEO of the REIT's manager.
"As such, this divestment presents a good opportunity to unlock value and enhance total returns for unitholders," he adds.
See also: SGX gives approval-in-principle to FHT to delist
Upon completion of the divestment, targeted by first quarter next year, CLCT will own a portfolio of 10 shopping malls, five business park properties and four logistics park properties located in 12 cities in mainland China.
