CMMT to explore asset classes beyond retail sector

PETALING JAYA: Capitaland Malaysia Mall Trust (CMMT) will be expanding its investment by exploring other asset classes beyond the retail sector and this includes commercial, office and industrial asset classes.

In a statement, CMMT manager Capitaland Malaysia Mall Trust REIT Management Sdn Bhd (CMRM) said more than 350 unitholders had voted at CMMT’S EGM held online yesterday, whereby 100% of the votes were in favour of the investment mandate expansion.

The mandate expansion shall include but not be limited to business parks, logistics facilities, warehouses, distribution centres, data centres and integrated developments.

Consequently, the names of CMMT and the manager will be changed to Capitaland

Malaysia Trust and Capitaland Malaysia REIT Management Sdn Bhd upon obtaining the approvals of the relevant authority and manager’s shareholders respectively.

After the necessary regulatory approvals, the investment mandate expansion is expected to be completed by the third quarter of 2021.

“CMMT will be better positioned for growth by leveraging Capitaland’s expertise and gain exposure to expanded asset classes. This will enhance the manager’s ability in delivering sustainable distributions and total returns to unitholders in the long term,” said CMRM chairman Lui Chong Chee.

Chief executive officer Low Peck Chen said the move would allow investment in a comprehensive range of income-producing assets to diversify CMMT’S revenue stream and to build a sector-diversified portfolio.

“A geographically and sector-diversified portfolio will benefit CMMT in the long term as it enhances the resiliency of its portfolio and is less susceptible to unprecedented adverse events and unforeseeable external-led events and factors.

“We will continue to strengthen the performance of the existing portfolio while pursuing inorganic growth via acquisitions of properties in existing and new asset classes, with financial discipline.

“We will also explore opportunities from both our sponsor Capitaland and third parties,” said Low.