I have received some questions regarding CapitaMall divesting Hougang Mall. Since I have a rather large proportion of stocks in Hougang Plaza, naturally I should be concerned and analyze the transaction. For those of you who do not know, CMT will be selling Hougang Plaza to Oxley Bloom for $119.1 mil. CMT is estimated to make a one time gain of $83.8 mil on this transaction.

Hougang Plaza

Take note that this is Hougang Plaza, not Hougang Mall. Hougang Mall is a much newer mall beside the Hougang MRT which is managed by AsiaMalls. When I did my diligence rounds at each of CMT’s malls, I was initially confused as well. Hougang Plaza is old and definitely one of the lower grade malls compared to CMT’s portfolio malls.

Hougang Plaza has a NLA of 75,353sf with 100% occupancy. The mall was purchased in 2005,2006 at a price of ...