SPH Reit has agreed to buy The Rail Mall in Upper Bukit Timah Road for $63.24 million, it announced yesterday. The mall comprises 43 single-storey shop units and 95 private carpark spaces.
Its tenants include Cold Storage, food and beverage outlets such as Toast Box, and a few tuition agencies.
The Rail Mall came into being when Lee Rubber subsidiary Singapore Engineers gave the 43 one-storey units a $5 million facelift in 1994 to turn it into a neighbourhood centre.
There was another revamp in 2008 as its management tried to position it as a food and lifestyle hub for the west.
Ms Susan Leng, chief executive for the trust's manager, said yesterday that the mall will provide SPH Reit with the opportunity to further strengthen its F&B offerings.
"We believe a well-curated mix of F&B concepts complemented with services will serve the immediate established Hillview and Upper Bukit Timah community well," she noted in a statement.
"In addition, SPH Reit will intensify community programmes leveraging on the Rail Corridor to attract a wider catchment, as it is well served by the public transport network and accessibility to expressways."
The complex has a total net lettable area of about 50,000 sq ft and a 99-year lease that will expire in 2046.
The acquisition is in line with the Reit's strategy of acquiring retail properties that complement its Paragon and Clementi Mall assets, said SPH Reit Management.
It is expected to be funded by a combination of debt and internal resources.
The property is held by Pulau Properties, which in turn is owned by the Lee Foundation and members of the Lee family.
SPH Reit units closed unchanged at 99 cents yesterday, before the announcement.