Jurong Point put on market with over S$2b price tag

Singapore’s biggest provincial shopping middle, Jurong Stage, has been created for sale using a price tag going above S$2 billion dollars.

This calculates to a lot more than S$3, 500 per rectangular foot depending on the industrial net lettable area of regarding 658, 500 sq feet that is available for sale simply by an equal partnership between Guthrie GTS and Lee Betty Tah Groupe, both of which were delisted.

For over S$2 billion, the high cost translates to a sub-4 % net produce, Michael Leong, director of sole advertising agent Mixture Realty, informed The Business Circumstances.

Guthrie and Lee Betty Tah will be divesting an overall total net lettable area of 702, 000 sq ft — including forty-four, 000 sq ft of space beneath the government’s Community/Sports Facilities Program (CSFS) which can be currently being utilized by occupiers including NTUC Primary Campus Co-operative’s My Primary Skool and voluntary well being organisations.

We have a further space of about fifty nine, 000 sq ft underneath three strata retail equipment divested simply by Lee Betty Tah and Guthrie regarding two decades before to Great Village, NTUC FairPrice and POSB — taking the total net lettable area in Jurong Point out 761, 500 sq feet.

Guthrie and Lee Betty Tah are offering their 702, 000 sq ft in the mall through the sale of shares in companies that personal this space. “The two partners possess owned the property for many years and want to look at pursuing new interests and opportunities, ” said Mr Leong. Lee Kim Tah was delisted in early 2015 and Guthrie in November 2013.

Most stockmarket analysts might think that a net yield of 3-plus per cent based on Guthrie and Lee Kim Tah’s asking price is too low to make for a yield-accretive purchase by Singapore mall Reits (real estate investment trusts).

However , Jurong Point is expected to appeal to a broad range of other institutional investors including sovereign wealth funds, pension funds and insurance groups.

Rarely do stabilised assets of this scale become available. There have been no comparable sales of a suburban retail house of this size on the open market for more than a decade in Singapore’s tightly held retail sector; other large sales have been either related party transactions including listed Reits or sales of partial interests.

A high-performing mall, Jurong Point is regarded as “fortress retail”. This, combined with the powerful growth planned for the Jurong area, will ensure a broad range of interest at the indicated pricing.

Jurong Point is seamlessly linked to the Boon Place MRT Train station and Bus Interchange. It currently draws an average month-to-month visitorship of six million and has a catchment of 150, 000 households within a five-km radius, with potential for growth because the new town planned in Tengah is progressively developed.

Major tenants for the space at Jurong Point possessed by Guthrie and Lee Kim Tah include FairPrice Xtra, Process of law, Harvey Grettle, Uniqlo and Kiddy Building in addition to 3 foodcourts. Signing up for ranks in the near future will be BHG, which will wide open a nearly 65, 000 sq ft mall on 3 levels in December; element of this space was previously populated by Kim Little.

The mall is virtually fully permit.

Jurong Level stands about two sites; one has an equilibrium lease term of about seventy six years plus the other, fifth there’s 89 years. All their combined area area is certainly 557, 288 sq foot.

The original Jurong Point was completed in 95 and ranges four degrees of retail space (Basement one particular to Level three). The CSFS space is about Levels some, 5 and 6.

Recognized, which was designed in 2008, includes three sell floors — Basement one particular and Amounts 1 and 3.

Regarding 1, 1000 carpark a lot in Jurong Point are around for use by simply shoppers.

The mall’s total gross floorboards area (GFA) is 1 ) 07 , 000, 000 sq foot; there is no unutilised GFA.