PCRT – BT

Perennial China Retail Trust ups stake in Chengdu mall to 80% for US$353.45m

Perennial China Retail Trust (PCRT) has exercised its option to increase its stake in Chengdu Longemont Shopping Mall Development to 80 per cent from 50 per cent, at a total purchase consideration of 2.24 billion yuan (US$353.45 million), its manager Perennial China Retail Trust Management Pte Ltd announced on Monday.

The manager said it is acquiring the additional 30 per cent stake in the mall as it believes the increased stake in the property will create potential upside for PCRT and a majority ownership gives PCRT greater control over the operations of the property.

The gross floor area of the Mall is expected to be reduced to 280,000 sqm from 455,260 sq m, hence reducing the planned number of above-ground levels to five from eight.

The manager said it expects the value of the mall to increase with the reduction of the gross floor area.