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Transactions (Chapter 10 Of Listing Requirements) Related Party Transactions

BackJun 02, 2015
Type Announcement
Subject TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS)
RELATED PARTY TRANSACTIONS
Description
CAPITAMALLS MALAYSIA TRUST ("CMMT")
- TENANCY AGREEMENT BETWEEN AMTRUSTEE BERHAD (AS TRUSTEE OF CMMT) AND STORHUB SELF STORAGE (SWP) SDN. BHD.

1. Introduction

We wish to announce that AmTrustee Berhad, being trustee of CMMT (“Trustee” or “Landlord”), has on 2 June 2015 entered into a tenancy agreement (“Tenancy Agreement”) with StorHub Self Storage (SWP) Sdn. Bhd. (“StorHub”) whereby the Trustee will lease out to StorHub part of Level 6 of Sungei Wang Plaza (“SWP”) for a term of three (3) years at a monthly gross rental income of RM63,185.60 only and the Landlord shall grant StorHub the option to renew the tenancy for a further three (3) terms of three (3) years at the revised rental to be mutually agreed (“Tenancy”). StorHub is a self storage operator and is an indirect wholly-owned subsidiary of CapitaLand Limited (“CL”). CL is deemed a major unitholder of CMMT and a major shareholder of CapitaMalls Malaysia REIT Management Sdn. Bhd., the manager of CMMT (“Manager”).

2. Financial Effect

The Tenancy will not have any effect on the total units of CMMT and substantial unitholders’ unitholding of CMMT as it does not involve any allotment or issuance of new units of CMMT. The Tenancy will also not have any material effect on the earnings, net asset value and gearing of CMMT.

3. Approval Required

Pursuant to the Securities Commission’s Guidelines on Real Estate Investment Trusts, the Tenancy is neither subject to the approvals of the Securities Commission nor the unitholders of CMMT.

4. Directors’ and Major Unitholders’ Inteests

Mr Jason Leow Juan Thong and Mr Ng Kok Siong, who are Directors of the Manager, are also the Chief Executive Officer of CapitaLand Mall Asia Limited (a wholly-owned subsidiary of CL) and Chief Corporate Development Officer of CL respectively. In addition, Ms Low Peck Chen, the Chief Executive Officer of the Manager, also sits on the board of CMMT Investment Limited, being the major unitholder of CMMT, as the representative of CMA.

Save as disclosed above and in section 1 of this announcement, none of the other directors of the Manager, major unitholders of CMMT, major shareholders of the Manager or persons connected with them has any interest, direct or indirect, in the Tenancy.

5. Approval by the Board of Directors of the Manager

Having considered the terms of the Tenancy, the independent valuation of the market rental of the space and the review report of the Tenancy Agreement by an external legal counsel, by the recommendation from the Audit Committee, the Board of Directors of the Manager (save and except for Mr Jason Leow Juan Thong, Mr Ng Kok Siong and Ms Low Peck Chen) has approved the Tenancy on the basis that the Tenancy is fair, reasonable, on normal commercial terms and is not detrimental to the interests of the non-interested unitholders of CMMT. The Tenancy is therefore, in accordance with the Securities Commission’s Guidelines on Real Estate Investment Trusts. 

This announcement is dated 2 June 2015.




Announcement Info

Company Name CAPITAMALLS MALAYSIA TRUST
Stock Name CMMT
Date Announced 02 Jun 2015
Category General Announcement for PLC
Reference Number GA1-27052015-00030