Agreed property value of S$550 million translates to approximately S$2,900 per square foot of net lettable area. Divestment allows Cuscaden Peak Investments Pte Ltd ("Cuscaden") and its JV partner to realise the value of The Seletar Mall ("TSM") as part of their active capital recycling strategy to enhance shareholder returns.
SINGAPORE, March 7, 2024 /PRNewswire/ — Cuscaden and its JV partner are pleased to announce the successful completion of the sale of TSM to an unrelated 3rd party based on an agreed property value of S$550 million which translates to approximately S$2,900 per square foot of net lettable area. This was negotiated on an arms-length, willing-buyer and willing-seller basis between the purchaser and vendors.
Built in 2014, TSM is a well-established and fully-tenanted suburban mall primarily serving the growing residential communities in North-Eastern Singapore. It provides a diverse and comprehensive mix of carefully curated retail amenities spread across six levels of approximately 190,000 square feet of net lettable area. Directly connected to TSM, the Fernvale Light Rail Transit provides a seamless connection to Sengkang MRT Station on the North-East Line and Sengkang Bus Interchange.
Mr Chua Chi Boon, Executive Vice President, Portfolio Management at Cuscaden, said, "The suburban retail property market in Singapore has been a key beneficiary of a robust post-COVID rebound, as strong demand from both tenants and shoppers underpins healthy positive rent reversions for well-located malls with attractive retail offerings like TSM.
As part of our active capital recycling strategy to enhance shareholder returns, we embarked on a sale of this property, together with our long-term capital partner, to realise the value created. Since the inception of TSM’s operations in 2014, our in-house property management team has been instrumental in realising the mall’s potential by effectively providing a comprehensive suite of services including marketing, leasing, finance and facilities management.
The timing of this divestment is opportune, drawing strong interest from prominent local and international real estate players attracted to the growth and resilience of Singapore’s suburban retail assets. There continues to be high demand for the limited pool of good quality properties within this segment, where the outlook remains positive."
TSM is an integral part of a thriving heartland community and will continue to be a retail destination for the residents in the Northeast.
About The Seletar Mall
The Seletar Mall is located at 33 Sengkang West Avenue. The property comprises 6 levels of retail (Basement 2 to Level 4) and 3 levels of carparks (Basement 3 to 5) with 378 carparking lots. It has a net lettable area of 189,467 sq ft spanning across 4 levels and 2 basements. With a Temporary Occupation Permit obtained in 2014, The Seletar Mall is a relatively young suburban mall serving the high-density residential areas of Sengkang and Punggol with a large population catchment of approximately 439,000.
Currently, the property is 100% tenanted with a diversified tenant profile, including a wide array of Food & Beverage, Gym & Fitness, Education & Enrichment, and Cinema operators. Some of the anchor tenants include NTUC Fair Price, Popular, Haidilao, Harvey Norman, Uniqlo, The Learning Lab and Shaw Theatres. These holistic offerings provide a one-stop service to the surrounding residential population, mainly young families with children. The property is also near several schools, such as Pei Hwa Secondary School, Sengkang Green Primary School and Fernvale Primary School.
Directly connected to the Fernvale Light Rail Transit, it provides a seamless connection to Sengkang MRT Station on the North-East Line and Sengkang Bus Interchange. As such, the property enjoys high pedestrian footfall from the railway network. Strategically located at the junction of Sengkang West Avenue and Fernvale Road, it boasts prominent and long frontages which allow for naming and branding rights.
About Cuscaden Peak Investments Pte Ltd
Cuscaden (formerly known as Singapore Press Holdings Limited before it was privatized on 13 May 2022) is owned by a consortium made up of three shareholders – Hotel Properties Limited, Mapletree Investments Pte. Ltd., and CLA Real Estate Holdings Pte. Ltd. It has businesses in Retail & Commercial, Purpose-Built Student Accommodation ("PBSA"), Aged Care and Events Management.
On the retail and commercial front, Cuscaden owns an approximate 61% stake in PARAGON REIT, whose portfolio comprises three properties in Singapore, namely Paragon, The Clementi Mall, and The Rail Mall. In Australia, PARAGON REIT holds an 85% stake in Figtree Grove Shopping Centre and a 50% stake in Westfield Marion Shopping Centre. Cuscaden also has a joint venture stake in an integrated development consisting of The Woodleigh Residences and The Woodleigh Mall.
The group is a leading player in PBSA, owning and operating a portfolio of assets in 19 cities across the United Kingdom and Germany. Cuscaden also owns Orange Valley, one of Singapore’s largest private nursing homes platforms, with an additional six assets in Japan. It also has investments in long-standing joint ventures, holding stakes in a Data Centre development, M1 Limited, and Constellar Holdings, which operates events development and management, as well as event space management businesses.
For more information, please visit www.cuscadenpeak.com
Important Notice: This announcement and the information contained herein does not constitute and is not intended to constitute an offering of any investment product to, or solicitation of, investors in any jurisdiction where such offering or solicitation would not be permitted.
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