SINGAPORE (Nov 20): CapitaLand has entered into an agreement to sell The Star Vista for $296 million to Rock Productions which is the business arm of New Creation Church.

Rock Productions is also the owner of The Star Performing Arts Centre that is co-located in the same development.

In a regulatory filing on Wednesday, CapitaLand said that the divestment is targeted to be completed by the end of the year, and is expected to generate net proceeds and net gains of $145 million and $32 million respectively.

Based on an independent valuation on June 30, The Star Vista was valued at $262 million.

Upon completion of this transaction, CapitaLand will own 19 malls in Singapore, including one under development.

Jason Leow, president of Singapore and International at CapitaLand Group, says: “The divestment of The Star Vista is in line with CapitaLand’s active and disciplined asset recycling strategy.”

Leow also notes that year to date, the group has divested close to $5.7 billion worth of assets, exceeding its annual target divestment of $3 billion.

“The proceeds from these divestments will enhance CapitaLand’s financial flexibility to seize new growth opportunities,” adds Leow.

Shares in CapitaLand closed 2 cents lower, or 0.5% down, at $3.66 on Wednesday before the announcement.