MMP REIT to take full control in prime Chengdu retail property

The Singapore-based Macquarie MEAG Prime (MMP) REIT will increase its 50% stake in prime Chengdu retail property to 100%, thus become the full owner of the property.

In the company's filing to the Singapore Stock Exchange (SGX), the company will pay S$70 million for the remaining stake.

Meanwhile, MMP REIT is allowed to enter into Business Cooperation Agreement with the Renhe Spring Group and it has also been granted first right of refusal to the group's pipeline of opportunities in China.

The company also expects a yield accretion of 3.4%, assuming 100% debt financing.

In April this year, the company announced to acquire 50% stake of Chengdu's Renhe Spring Department Store at a price of S$30 million, as the company's first attempt to expand in the mainland market.

Located in Wuhou district, the property has a gross floor area of some 101,000 sq f.

Macquarie Meag Prime REIT (MMP REIT) is a real estate investment trust investing primarily in real estate used for retail and/or office purposes, both in Singapore and overseas.