Keppel Land has bought a stake in 112 Katong shopping mall.
Keppel Corp said in a statement published on the Singapore Exchange website yesterday that Keppel Land paid $51.4 million for the 22.4 per cent stake from BHG Holdings, Perennial Singapore Investment Holdings and Imagine Properties, a unit of BreadTalk Group.
The remaining 77.6 per cent stake in the mall is held by Alpha Asia Macro Trends Fund (AAMTF), which is managed by Alpha Investment Partners, a property fund management vehicle of Keppel Land.
"The investment in 112 Katong will add to our quality portfolio of retail and mixed-use properties," said Keppel Land chief executive Ang Wee Gee in the statement.
"We will focus on strengthening the mall's positioning as a lifestyle and dining destination in the east, catering to shoppers who are looking for unique experiences."
The company will appoint Keppel Land Retail Management to manage the property.
The retail manager has established a strong track record in the development and management of about 3 million sq ft of retail space over the years, said Keppel Corp.
The properties include Jurong Point shopping centre, Heartland Mall, Century Square, Tampines One, Hougang Mall, Tiong Bahru Plaza, White Sands, Liang Court and Taimall in Taiwan.
112 Katong is a six-storey shopping mall at the junction of East Coast Road and Joo Chiat Road.
The mall - completed in November 2011 - has a net lettable area of about 207,000 sq ft.
Major tenants include Katong Market Place, Golden Village, Food Republic and a number of popular restaurants.
The transaction is not expected to have any material impact on the net tangible assets or earnings per share of Keppel Corp for the current financial year, the company said.
Keppel Corp shares closed two cents down at $4.84 last Friday.