This is the largest transaction value achieved for a standalone retail mall with an original 999-year lease. (Photo: Colliers International)
Sembawang Shopping Centre along Sembawang Road has been sold by CapitaLand Mall Trust (CMT) to a joint venture between Lian Beng Group and Apricot Capital for $248 million, marketing agent Colliers International said on Thursday (19 Apr).
This is the largest transaction value achieved for a standalone retail mall with an original 999-year lease.
More: Sim Lim Square Attempting $1.1 Billion En Bloc Sale
Located close to the Sembawang and Yishun MRT stations, Sembawang Shopping Centre was built in 1997. CMT acquired the property in 2005 and it was subsequently reopened to shoppers in 2008.
The mall comprises four levels of retail space with a net lettable area of 143,631 sq ft. Major tenants include Giant, Yamaha Music School, Food Junction and Daiso Japan.
In a statement, CMT said that Sembawang Shopping Centre was valued at $126 million as at end 2017. The sale is expected to generate net proceeds of about $245.6 million and a net gain of around $119.6 million when the transaction is completed by June.
“There is strong interest and healthy appetite among both local and regional investors for Singapore suburban retail properties that offer stable recurring income. Sembawang Shopping Centre also offers inherent investment potential that will benefit from the future growth of the surrounding precinct,” said Terence Tang, managing director of Asia capital markets & investment services at Colliers International.
Jerome Wright, director of capital markets & investment services at Colliers International, added: “The Singapore real estate sector has witnessed a steady flow of deals in recent years, driven by buoyant investor sentiment as well as recovery in the residential and commercial property segments. We expect investment sales to remain robust this year against a backdrop of improving business outlook and stronger economic growth in the city-state.”
Upon completion of the transaction, CMT’s Singapore portfolio will comprise 15 properties including Plaza Singapura, Bugis Junction and JCube.
For the latest property news, trends, resources and expert opinions, visit our Property News page. Home buyers looking for Singapore Properties may like to visit our Listings, Project Reviews and Guides.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
