The former Big Box shopping mall in Jurong East has been acquired by Perennial Real Estate Holdings for $118 million, said the developer yesterday.
More than $70 million is expected to be invested to redevelop the site into a business park, said the company, which has obtained JTC Corporation's confirmation for the zoning of the site to be changed.
The property is located in the Jurong Lake District, which is slated to become Singapore's largest commercial and regional centre outside of the city centre.
Redevelopment will be completed progressively from the fourth quarter next year, with the property being renamed Perennial Business City.
With a land area of approximately 606,600 sq ft, the former mall's spaces are predominantly designed for warehousing and warehouse retail usage.
It is linked to surrounding buildings such as Jem and IMM and has a sheltered connection to Jurong East MRT station.
It is accessible via major expressways, including Ayer Rajah Expressway, Pan-Island Expressway, and the Tuas Second Link.
"The property is also directly linked... to Ng Teng Fong General Hospital and Jurong Community Hospital, which will complement its potential biomedical sciences and health tenants," Perennial said in a statement.
It plans to increase the property's gross floor area from 1.4 million sq ft to 1.5 million sq ft, and the net lettable area from 1 million sq ft to 1.1 million sq ft.
The new development will feature large floor plates, ample carpark spaces and a large rooftop garden with an amphitheatre.
Perennial will own a majority 51 per cent stake in the future business park. The remaining stake will be held by other investors, such as HPRY Holdings, which is the investment vehicle of Perennial director Kuok Khoon Hong.
The transaction is expected to be complete by mid-February next year.
The developer has appointed CBRE Singapore to kick-start marketing and leasing to potential tenants from industries such as infocomm technology and biomedical sciences, and financial institutions.
Perennial chief executive Pua Seck Guan said the acquisition was a "major milestone" for expanding the company's real estate portfolio to include business parks.
"With its strategic location, excellent transport connectivity, close proximity to amenities and innovative design to support urban sustainability and healthy well-being, Perennial Business City is well poised to cater to local and regional businesses geared for the future economy," he said.
