Perennial and SPH pay $92.6 million to raise stakes in Chinatown Point mall

Units of Perennial Real Estate Holdings and Singapore Press Holdings are acquiring a 60 per cent stake in Perennial Chinatown Point for $92.6 million.
Units of Perennial Real Estate Holdings and Singapore Press Holdings are acquiring a 60 per cent stake in Perennial Chinatown Point for $92.6 million. PHOTO: PERENNIAL

SINGAPORE - Units of Perennial Real Estate Holdings and Singapore Press Holdings are acquiring a 60 per cent stake in Perennial Chinatown Point for $92.6 million.

Perennial Chinatown Point owns Chinatown Point, comprising a mall and four strata office units in an integrated development.

Perennial said in a statement on Monday (Nov 28) that it will take a 40 per cent stake for $61.8 million that will be funded by external loans.

The acquisition is expected to be completed on Dec 9.

It means Perennial will become the largest investor of Chinatown Point Mall with a 45.15 stake after the completed acquisition, while SPH's stake will rise from 7.35 to 27.35 per cent.

The price was based on an agreed property value of $442.5 million, translating to a purchase price of $2,077 per square feet net lettable area.

Perennial chief executive Pua Seck Guan said: "The increased stake in Chinatown Point Mall is a highly attractive investment which not only aligns with our strategic priority to augment recurrent income, but also strengthens our foothold in Singapore's central business district."

Chinatown Point is expected to deliver a net property income yield of about 5.2 per cent in 2016.

The average shopper traffic at the mall has grown steadily in the last few years, now at about 2.4 million on a monthly basis, 78,900 on a weekday, and 76,400 on a weekend. The mall had a committed occupancy of 97 per cent as at 31 October, and 100 per cent for the four office units.

Perennial Chinatown Point is a consortium of investors set up in July 2010 to acquire Chinatown Point Mall. Other investors besides SPH are NTUC FairPrice Co-Operative and private investors.