ASSET ENHANCEMENT INITIATIVES In 2023, we have made significant progress in elevating our retail properties through well-planned AEIs and unit reconfigurations to enhance overall shopper experience. In March 2023, we completed the AEI at CapitaMall Yuhuating that spanned approximately 8,900 sq m. Through this AEI, we introduced a diverse range of offerings and experiences, incorporating enticing F&B options, immersive Leisure & Entertainment facilities, and enriching educational tenants. The improved options resulted in around +112% rental reversion for the zone. Building on this momentum, CLCT completed another AEI at basement two of Rock Square in July 2023. 2,310 sq m of space, formerly occupied by an anchor supermarket, was reconfigured to introduce trending lifestyle offerings, such as Gifts & Toys and specialty F&B establishments. The AEI area achieved a return on investment of more than 13%. At CapitaMall Grand Canyon, we converted a conventional anchor supermarket space located on basement one and turned it into approximately 7,800 sq m of vibrant area offering 60 new F&B outlets, trendy retail and amenity stores, alongside the new retail concept supermarket, 7FRESH. Launched in December 2023, the rejuvenated zone recorded an approximately 50% increase in rental income. These initiatives reflect our unwavering commitment to continuously enhance and optimise our retail assets. Looking forward, we remain steadfast in our dedication to providing vibrant and alluring retail experiences that generate value for our tenants and Unitholders. DIVESTMENT OF CAPITAMALL SHUANGJING On 23 January 2024, we announced the completion of CapitaMall Shuangjing’s divestment. The divestment is part of our proactive portfolio management strategy to monetise our non-core assets. CapitaMall Shuangjing is a master-leased mall in CLCT’s IPO portfolio that may require significant capital outlay to remain competitive moving forward. Therefore, this divestment presented an excellent opportunity to unlock value, optimise returns, and create greater financial flexibility for CLCT. Following the completion of this divestment, CLCT's portfolio will consist of nine shopping malls, five business park properties, and four logistics park properties across 12 cities. This move reaffirms our commitment to continuously optimise our portfolio, ensuring alignment with our long-term growth objectives. Rock Square ANNUAL REPORT 2023 61 Financials Framework Portfolio Performance Leadership Overview
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