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Perennial Real Estate Holdings and Singapore Press Holdings (SPH), via their respective subsidiaries, have acquired 60 percent stake in Perennial Chinatown Point LLP (PCP LLP) for S$92.6 million.
PCP LLP owns Chinatown Point Mall, which comprises a retail mall and four strata office units within an integrated development. The consortium was set up in July 2010 to acquire Chinatown Point Mall, with investors including SPH, NTUC FairPrice Co-Operative and other private investors.
In an SGX filing, Perennial said the acquisition price was derived based on an agreed property value of S$442.5 million, which works out to a purchase price of S$2,077 per sq ft net lettable area.
Perennial will acquire the 40 percent stake for S$61.8 million, which will be funded via external borrowings. The acquisition is set to be completed on 9 December.
Following the acquisition, Perennial’s effective stake in Chinatown Point Mall will increase from 5.15 percent to 45.15 percent, making it the biggest investor in the mall. SPH stake, on the other hand, will increase from 7.35 percent to 27.35 percent.
“The increased stake in Chinatown Point Mall is a highly attractive investment which not only aligns with our strategic priority to augment recurrent income, but also strengthens our foothold in Singapore’s CBD,” said Perennial chief executive officer Pua Seck Guan.
Notably, Chinatown Point Mall is expected to deliver a net property income yield of around 5.2 percent in 2016.
Over the last few years, the average shopper traffic at the mall has steadily grown to about 2.4 million on a monthly basis, 78,900 on a weekday, and 76,400 on a weekend. As at 31 October, the mall had a committed occupancy of 97 percent, while its four office units are fully tenanted.
Image: Chinatown Point Mall (Source: Perennial Real Estate Holdings)
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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