Perennial, investors sell Singapore's Chinatown Point Mall for US$383m

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Perennial Real Estate Holdings and a consortium of investors, including Singapore Press Holdings, have agreed to sell their stakes in the Chinatown Point Mall in Singapore in a deal worth S$520m (US$383.2m).

The sellers offloaded their interests to a fund managed by Pan Asia Realty Advisors, which is a joint venture between Japan’s Mitsubishi Estate and Hong Kong-headquartered CLSA, according to announcements.

Chinatown Point Mall features a retail mall and four strata office units totalling 19,755 sq.m. of net lettable space in the heart of the Chinatown precinct in Singapore’s CBD.

The deal value includes S$225m in cash for the issued shares, in addition to shareholder loans.

Perennial is the largest stakeholder in the asset with a 50.64% interest and will gain S$125.3m in net proceeds from the disposal.

“The divestment is also aligned with Perennial’s active capital recycling strategy to rebalance its portfolio and maximise returns for shareholders,” said Perennial CEO Pua Seck Guan.

Perennial Real Estate syndicated a group of investors to buy the asset for S$250m in total in July 2010, and then invested S$91m into redeveloping the property.

Perennial Retail Management will continue in its role as the property manager of Chinatown Point Mall.

Headquartered and listed in Singapore, Perennial Real Estate is a real estate owner, developer and manager, as well as a healthcare services owner.

Perennial Real Estate has a combined real estate portfolio of more than 6m sq.m. across China, Singapore, Malaysia, Indonesia and Ghana.

In Singapore, it has invested in and manages assets including Capitol Singapore, CHIJMES, AXA Tower, 111 Somerset and House of Tan Yeok Nee.