CMT – BT

CapitaMall Trust in office leases with Temasek, Fullerton

Renewal, new leases at Atrium@Orchard; JCube shop lease for SingTel unit

CAPITAMALL Trust (CMT) has entered into office leases with Temasek Holdings and its wholly owned subsidiary Fullerton Fund Management Company, for an aggregate consideration of around $221.8 million.

Temasek is currently an anchor tenant at The Atrium@Orchard, which is part of CMT’s portfolio. Its leases are due to expire on April 30, 2012.

CMT yesterday renewed Temasek’s leases and granted new leases to it. It also entered into a lease with Fullerton.

Temasek has a deemed interest of around 29.97 per cent in CMT and is regarded as a controlling unitholder. As a result, the office leases constitute ‘interested person transactions’ under the Listing Manual and ‘interested party transactions’ under the Property Funds Appendix.

CMT’s manager commissioned CB Richard Ellis (CBRE) to provide an independent opinion on the office leases’ terms. The property consultancy found that the rental rates are comparable with prevailing market rates and leases of similar office premises, and CMT’s manager viewed the aggregate office lease consideration as fair and reasonable.

CMT also entered into a retail shop lease with Singapore Telecommunications’s wholly-owned subsidiary Telecom Equipment, for a consideration of around $1.4 million.

Telecom Equipment will take up a three-year lease at JCube, which is undergoing refurbishment and is due to open in the first quarter of 2012. The lease will start on or around the date JCube receives its Temporary Occupation Permit.

SingTel is a subsidiary of Temasek and CMT also commissioned CBRE to provide an independent opinion on the terms of the retail shop lease.

CBRE’s opinion indicates that the rental rate is at market level and the other commercial terms in the lease are consistent with normal commercial terms. CMT’s manager viewed the retail lease consideration as fair and reasonable.

CMT ended trading on the stock market yesterday at $1.90, one and a half cents higher.