Units of Perennial Real Estate Holdings and Singapore Press Holdings (SPH) are acquiring a 60 per cent stake in Perennial Chinatown Point for $92.6 million.
Perennial Chinatown Point owns the retail mall and four strata office units in Chinatown Point, an integrated development.
Perennial said in a statement yesterday 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 that Perennial will become the largest investor of Perennial Chinatown Point with a 45.15 per cent 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 sq foot of net lettable area.
Perennial chief executive Pua Seck Guan said: "The increased stake in Chinatown Point... 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."
The investment is expected to deliver a net property income yield of about 5.2 per cent this year.
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 Oct 31, and 100 per cent for the four office units.
Perennial Chinatown Point is a consortium of investors set up in July 2010. Other investors besides SPH are NTUC FairPrice Co-operative and private investors.
The property firm said: "The majority stake in Chinatown Point... will boost recurrent income streams and provide income stability together with Perennial's completed assets in Singapore and China, as well as its operating medical and healthcare related businesses in China."