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Capitaland Malaysia Mall Trust ("CMMT") - Award Of Contract To A Related Party

BackOct 25, 2017
Type Announcement
Subject OTHERS


Announcement Details/Table Section :-

1. Introduction

We refer to the previous announcement dated 1 June 2017 in relation to the award of contract to a related party. Unless otherwise stated, the definitions used herein shall have the same meanings as set out in the said announcement.

We wish to announce that the Trustee, on behalf of CMMT, has on 25 October 2017 entered into a Supplemental Project Management Agreement (“Supplemental PMA”) with CRMSB, a related party of CMRM, amongst others, the project defined in the PMA as ECM AEI and SWP FS shall include the reconfiguration of retail space on Lower Ground, Ground Floor, 1st Floor and 2nd Floor of SWP (“SWP AEI”), and the contract sum for ECM AEI and SWP AEI is estimated at RM66,050,000. The fee to CRMSB remains unchanged at 2.85% of the final contract sum for the AEI Works.

CRMSB is a related party of the Manager by virtue of it being an indirect wholly-owned subsidiary of CMA, which is deemed a major unitholder of CMMT and a major shareholder of the Manager.

2. Financial Effect

The Supplemental PMA will not have any effect on the total units of CMMT nor on the substantial unitholders’ unitholding of CMMT as it does not involve any allotment or issuance of new units of CMMT. The Supplemental PMA 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 Supplemental PMA is neither subject to the approvals of the Securities Commission nor the unitholders of CMMT.

4. Directors’ and Major Unitholders’ Interests

Mr Jason Leow Juan Thong and Mr Ng Kok Siong, who are Directors of the Manager, are also the Board representatives of CMA and CapitaLand Limited. In addition, Ms Low Peck Chen, the Chief Executive Officer of the Manager, is also Director of CRMSB.

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 Supplemental PMA.

5. Approval by the Independent Directors of the Manager

Upon the recommendation from the Audit Committee, the Independent Directors of the Manager have approved the Supplemental PMA on the basis that the Supplemental PMA is fair, reasonable, on normal commercial terms and is not detrimental to the interests of the non-interested unitholders of CMMT. The Supplemental PMA is therefore, in accordance with the Securities Commission’s Guidelines on Real Estate Investment Trusts.

This announcement is dated 25 October 2017.

Announcement Info

Stock Name CMMT
Date Announced 25 Oct 2017
Category General Announcement for PLC
Reference Number GA1-25102017-00007