SINGAPORE (July 14): CapitaLand, via its wholly-owned subsidiaries Brilliance Residential and CMA Singapore Investments (3), has divested Bedok Mall to CapitaLand Mall Trust (CMT) for $780 million.

Both subsidiaries entered into a sale and purchase agreement with HSBC Institutional Trust Services (Singapore) Limited, the trustee of CMT for the sale of the mall, CapitaLand told the stock exchange in a statement.

Under the agreement, the entire unitholding interest of Brilliance Mall Trust (BMT), the owner of Bedok Mall, was also divested at about $3.1 million for its net assets.

The transaction, which is conditional upon CMT unitholders’ approval, among other things, is expected to be completed by the fourth quarter this year.

According to CapitaLand, the move to divest Bedok Mall is part of the group’s “robust capital recycling strategy to realise development profit and deploy capital into higher yielding ventures”.

CapitaLand president and group CEO Lim Ming Yan said it is similar to the ongoing divestment of a group of serviced residences and rental housing properties to Ascott Residence Trust and the group’s 30% stake in PWC Building announced last month.

“These transactions allow us to realise our investment value and development profit, and enhance our financial flexibility,” he said.

Opened in December 2013, Bedok Mall is the first major mall in the heart of Bedok Town Centre, serving Singapore’s largest estate of about 300,000 residents as well as other residents in the east of Singapore.

It is part of an integrated retail-residential-transport development, which also includes the 583-unit condominium Bedok Residences developed by CapitaLand that received its Temporary Occupancy Permit in May 2015.

CapitaLand ended up 1 cent or 0.3% to $3.38, giving it a market capitalisation of $14.43 billion.