Mercatus divests two retail assets in Singapore for $2.16 billion to Link REIT
By Khairani Afifi Noordin
/ The Edge Singapore |
Jurong Point is one of the non-core retail assets divested by Mercatus (Photo: Mercatus)
SINGAPORE (EDGEPROP) - The subsidiaries of Mercatus Co-Operative, a unit of NTUC Enterprise Co-operative, have entered into a sale and purchase agreement with various subsidiaries of Link REIT to divest Mercatus’ 100% interest in Jurong Point and Swing By @ Thomson Plaza for $2.16 billion.
The divestment, which is a result of a strategic review undertaken by Mercatus, is expected to be completed on March 31, 2023.
Mercatus will continue to retain ownership of assets that are substantially used by NTUC, NTUC Enterprise and its portfolio of social enterprises. Jurong Point and Swing By @ Thomson Plaza are divested as these are considered non-core.
Hong Kong-listed Link REIT is the largest REIT in Asia, managed by Link Asset Management Ltd (Link). In conjunction with the divestment, Link has committed to offering employment to all affected employees of Mercatus.
Swing By @ Thomson Plaza, one of two non-core assets divested by Mercatus (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Mercatus deputy chairman Seah Kian Peng and group CEO of NTUC Enterprise says the divestment allows the company to unlock some value and redeploy capital to specific areas where it can make a difference in the lives of families in Singapore such as by scaling services in healthcare and education.
“We appreciate Link’s willingness to retain talent and will work together with the Singapore Industrial and Services Employees' Union to support Mercatus' employees throughout this exercise,” he adds.
As part of the transaction, Link will also enter into a 10-year asset and property management service agreement at market standard rate for AMK Hub, which will remain under Mercatus’ ownership. Link will fully fund the acquisition through its cash resources and debt facilities.
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