Lian Beng joint venture buys Sembawang Shopping Centre for $248 mil

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/ EdgeProp
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April 19, 2018 7:06 PM SGT
Lian Beng Group and Apricot Capital, the private investment company of the Teo family of Super Group are buying Sembawang Shopping Centre from Singapore’s largest retail REIT CapitaLand Mall Trust (CMT) for $248 million. Lian Beng and Apricot Capital, the private investment company of Super Group’s Teo family, have equal stakes in the joint venture.
The purchase price of $248 million is the largest transaction value achieved for such a retail property in Singapore in recent years, according to Colliers International who brokered the sale.
Located along Sembawang Road, Sembawang Shopping Centre was acquired by CMT in 2005 and revamped. It reopened in 2008 as a four-level mall (three-storeys and a basement) with gross floor area (GFA) of 206,087 sq ft and net lettable area (NLA) of 143,631 sq ft. Based on the purchase price of $248 million, the price psf is $1,203 psf based on GFA and $1,727 psf based on NLA.
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Located along Sembawang Road, the mall comprises four levels of retail space, with a net lettable area of 143,631 square feet. (Credit: CMT)
The mall has an occupancy rate of 99.4% as at end Dec 2017, with anchor tenants such as Giant, Yamaha Music School, Fund Junction and Daiso Japan.
Sembawang Shopping Centre was valued at $126 million as at December 31 in 2017. For CMT, the divestment is expected to generate net proceeds of about $245.6 million and a net gain of about $119.6 million when the transaction is completed by June 2018.
Upon completion of this transaction, CMT’s portfolio will comprise 15 properties located in suburban areas and downtown core of Singapore, for instance Tampines Mall, Junction 8 and Plaza Singapura.