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Report: Singaporean JV nears S$2.2B sale of shopping center

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Report: Singaporean JV nears S$2.2B sale of shopping center

Lee Kim Tah Holdings Ltd. and Guthrie GTS Ltd. are reportedly nearing a deal to offload the Jurong Point shopping mall in Singapore for S$2.2 billion, reflecting an approximately 4.2% net yield, according to The (Singapore) Business Times.

Mercatus Co-operative Ltd. is set to acquire the property in what is expected to be the biggest property transaction so far in the country, year to date. The purchase price was equivalent to S$3,343 per square foot, based on the mall's 658,000 square feet of commercial net lettable area.

The mall is fully leased and sits on two plots, one with a balance lease term of approximately 75.5 years and the other with a remaining term of 88 years.

Industry observers believe that the deal aligns with Mercatus' business strategy, according to the April 3 report.

Mercatus is a social enterprise of the National Trades Union Congress, or NTUC, in Singapore. NTUC established the enterprise in May 2011 with a vision of owning and managing shopping centers in the city-state, according to the Mercatus website.

As of March 31, US$1 was equivalent to S$1.40.