07
CapitaLand Mall Trust
Annual Report 2015
Overview
Sustainability
Business
Review
Portfolio
Details
Corporate
Governance &
Transparency
Financials &
Additional
Information
At Clarke Quay, we completed the reconfiguration
works at Block A in the second quarter and Block C
in the fourth quarter of 2015 to house more exciting
F&B and entertainment concepts. With the expanded
offerings, party-goers as well as families and friends
bonding over good food and quality ambience can
easily find an ideal venue from Clarke Quay’s wide
variety of restaurants, wine bars and entertainment
outlets.
In 2015, we also commenced interior rejuvenation
works at Plaza Singapura to refresh the mall and
reinforce its position as the destination mall for families
and friends. We target to complete the works by
end-2016.
In addition, to maximise the full potential of its site,
we will be redeveloping Funan DigitaLife Mall into an
integrated development that is set to complement
the transformation of the Civic and Cultural District.
The mall will be closed in the third quarter of 2016
for redevelopment works which will take about three
years. Set to be an aspirational lifestyle destination,
the new space will benefit from CapitaLand Group’s
strong expertise in integrated developments. It is
envisioned to be an experiential creative hub in the
city that engages communities to incubate new ideas
and passions, and enables shoppers to enjoy retail in
a technology-enabled environment.
Looking back at our track record, we have demonstrated
our abilities to execute our vision and differentiate ourself
through the many successful AEI. We will continue to
maximise this competitive advantage and transform our
malls through AEI and reinforce our relevance to the
communities we operate in.
Optimising Portfolio from Investment Activities
With the completion of the acquisition of Bedok Mall by
way of acquiring all units in Brilliance Mall Trust (BMT)
on 1 October 2015, CMT reinforced its leadership
position as Singapore’s largest real estate investment
trust (REIT). The acquisition was part funded by the
issuance of 72.0 million units at the issue price of
S$1.9022 per unit amounting to approximately S$137.0
million, with the balance comprising bank borrowings.
As part of an integrated retail-residential-transport
hub development, Bedok Mall complements CMT’s
current portfolio of mainly suburban malls catering to
the necessity shopping segment, and strengthens its
presence in the eastern part of Singapore.
On 15 December 2015, we sold Rivervale Mall at
S$190.5 million and recorded a gain of S$72.7 million.
Healthy Balance Sheet and Financial Flexibility
In 2015, we raised about S$999.8 million through the
drawdown of term loan facilities and notes issuances.
S$646.1 million of term loan facilities was drawn down
to partially fund the acquisition of BMT, which holds
Bedok Mall in October 2015. In December 2015,
net proceeds of S$188.0 million from the sale of
River vale Mall were used to par tially repay the
term loan.
For the notes issuances, we tapped on the debt
markets in Japan and Hong Kong and issued notes
with debt tenures ranging from eight to 12 years.
The principal and interest components of these foreign
currency denominated notes were swapped into
Singapore dollars at fixed rates to eliminate currency
and interest rate risks.
As at 31 December 2015, CMT’s debt profile remained
healthy with an aggregate leverage of 35.4% and an
average borrowing cost of 3.3% per annum. All of
CMT’s borrowings were unsecured, giving us financial
flexibility.
Striving for Excellence
Through our diligence to maximise value for our
Unitholders, we have received industry recognition in
areas of investor relations, corporate governance and
green efforts.
In July 2015, CMT won two awards – silver for Best
Investor Relations and bronze for Best Annual Report
in the REITs & Business Trusts category – at the
Singapore Corporate Awards 2015.
In addition, CMT was crowned the winner of the
Singapore Corporate Governance Award in the REITs
& Business Trusts category at the Securities Investors
Association (Singapore) Investors’ Choice Awards
2015 for the fourth consecutive year. CMT was also
the runner-up for the Most Transparent Company
Award in the REITs & Business Trusts category,
a category in which we have received recognition for
12 consecutive years – eight times as winner and four
times as runner-up.
