SINGAPORE: Singapore-listed developer CapitaLand said on Wednesday (Nov 20) that it has agreed to sell The Star Vista for S$296 million to Rock Productions, the business arm of New Creation Church.
The sale, which is scheduled to be completed by the end of this year, is expected to generate about S$145 million in net proceeds and about S$32 million in net gain for CapitaLand.
The selling price is about 13 per cent above the S$262 million that The Star Vista was valued at the end of June.
Located next to the Buona Vista MRT Interchange, The Star Vista is part of a 15-storey integrated development that also includes a 5,000-seat auditorium, which serves as a place of worship on service days for the church - its anchor tenant.
The mall was opened in September 2012 and comprises three levels of retail space with a net lettable area of about 162,500 square feet.
Responding to CNA's queries, the church said the decision to buy the property was made after it was told by CapitaLand that there were parties interested to acquire it and a sale process had been initiated.
"Given that The Star Vista and The Star PAC are inextricably linked, our immediate objective of acquiring The Star Vista is both to protect the interest of the church and to preserve the good experience for all who come to The Star PAC," said deacon Yong Chee Ram, chairman of the church's council.
He added that "The Star Vista is expected to generate healthy returns for Rock Productions".
The mall had a 95 per cent occupancy as of end-June. Its major tenants include Beauty in the Pot and LeNu, Canton Paradise Teahouse, Redman by Phoon Huat, Swee Lee and Cold Storage.
When the transaction is completed, CapitaLand will own 19 malls, including one under
development in Singapore.
Rock Productions owns The Star Performing Arts Centre that is co-located with The Star Vista.
It also manages Rock Gifts & Book Centre, a retail centre that supplies a wide range of inspirational books, music, sermon CDs, DVDs and gifts, as well as Omega Tours & Travel and Shine Auditorium in Shaw Tower.