SINGAPORE - Suntec Real Estate Investment Trust (Suntec Reit) has entered into a conditional sale agreement for the sale of Park Mall at a price of S$411.8 million, said the Reit manager ARA Trust Management (Suntec) on Monday.

The sale price is based on a property valuation by Colliers International.

Suntec Reit will use part of the proceeds from the sale to fund a joint venture company which has been set up to redevelop Park Mall into a commercial development comprising two office blocks and a retail component.

Suntec Reit has a 30 per cent interest in the joint venture company, Park Mall Investment Limited. Phoenix 99 and Haiyi Holdings each have a 35 per cent interest in the joint venture.

Suntec Reit acquired Park Mall in 2005 for S$245.1 million. Park Mall is an integrated office, lifestyle and home furnishing mall located next to Dhoby Ghaut MRT.

The property is more than 40 years old, with remaining land lease tenure of 53 years.

ARA Trust chief executive Yeo See Kiat said in a statement that the redevelopment would enhance the gross floor area of the site.

Suntec Reit will also have the ability to own part of the redeveloped property by acquiring one office block upon completion, he said.