CMA

CMA: establishes the CMA China Devt Fund III (CMCDF III) with a fund size of US$1b. The fund, with a fund life of 8 yrs, will invest in the devt of shopping malls and properties predominantly used for retail purposes in China. CMA holds a 50% stake in the fund, while the remaining stakes are held by institutional investors from Asia and the US. This effectively allows CapitaLand Group to further its asset light strategy. The fund will own 3 CMA shopping malls that are currently under devt as seed assets. They are: i) CapitaMall Tianfu, an integrated development comprising a six-storey shopping mall and residential and office towers in Chengdu; ii) CapitaMall Meilicheng, a five-storey shopping mall in Chengdu; and iii) the Luwan integrated development comprising an eight-storey shopping mall and a 29-storey office tower in Shanghai. Based on CMA’s NAV of the seed assets as at 31 Mar ’12 of $640.4m, and taking into account related trxn costs, CMA is expected to recognize a gain arising from the transaction of $35.9m and a fair value gain of $35.9m on its retained stake.