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Monday, 17 November 2014

CapitaMalls Malaysia Trust (CMMT) severely affected by Sungei Wang Plaza poor performance

 CapitaMalls Malaysia Trust (CMMT) , a REIT by Singapore's CapitaLand, manages Gurney Plaza in Penang, a majority interest in Sungei Wang Plaza in Kuala Lumpur, The Mines in Selangor and East Coast Mall in Kuantan, Pahang, a portfolio with a total net let table area of over 2.5mil sq ft.

Sungei Wang Plaza continued to suffer negative rental reversion. The mall continues to be plagued by the MRT construction which resulted in a decline in shopper traffic, thus leading to the negative rental reversion .

AmResearch said CMMT had achieved an overall positive rental reversion of +3.3% for the nine-month financial year 2014 (FY14) period – Gurney Plaza (+7.7%), The Mines (+7.4%), East Coast Mall (+13.5%) and Sungei Wang Plaza (-7.3%).

Sungei Wang Plaza Merchants Association Kuala Lumpur (tenant) claim poor management by Property Manager CB Richard Ellis(Malaysia)Sdn Bhd (CBRE).

Sungei Wang Plaza Merchants Association Kuala Lumpur claim some lot able to command RM25,000 per month but now no taker even at RM6,000 to RM10,000 per month. They claim the plaza have few hundred vacant lot (excluding 6th floor), of which, 70%  of vacant lot own by CMMT and the balance of 30% vacant lot own by private individual owner. Sungei Wang Plaza have 600 lots. This seem more severe than AmResearch of -7.3% base on 3rd quarter result.

Earlier, Nanyang reported that CBRE refuse to answer query from media.

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