Seletar Mall Sold To Allgreen Properties for $550 Million
Enhancing Retail Presence in Singapore’s Heartlands
In a significant development in Singapore’s retail sector, Allgreen Properties has finalized the acquisition of The Seletar Mall for S$550 million, bolstering its retail portfolio in the country’s suburban areas.
This transaction, involving Cuscaden Peak Investments and United Engineers (UE), positions Allgreen to tap into the vibrant market of Sengkang West, following a report by media in January 2024 about the exclusive due diligence underway for the purchase.
The sale price, translating to approximately S$2,900 per square foot of net lettable area, reflects the mall’s premium location and potential for growth.
Brokering this major deal were Cushman & Wakefield and JLL, marking a notable shift in the retail landscape.
The Seletar Mall, adjacent to Fernvale LRT station and with a leasehold tenure of 99 years from 2012, boasts about 190,000 sq ft across six levels, including notable tenants such as FairPrice Finest and Shaw Theatres.
Future Plans and Market Optimism
Allgreen’s managing director, Tho Leong Chye, expressed enthusiasm about the acquisition, highlighting the diversification it brings to the group’s retail footprint, especially with the upcoming Pasir Ris Mall set to open in Q2 2024.
Meanwhile, Cuscaden Peak Investments views the divestment as an opportunity to recycle capital and boost shareholder returns amidst a robust post-Covid-19 rebound in the suburban retail market.
Potential Sale of The Rail Mall
In related news, The Rail Mall, another property under Cuscaden Peak Investments, is expected to be put on the market soon with an anticipated asking price of around S$80 million.
This development emphasizes the dynamic nature of Singapore’s retail property market and the strategic moves by key players to optimize their portfolios.
This transaction not only highlights the demand for quality retail spaces in Singapore’s suburban areas but also underscores the resilience and growth potential of the sector.
With its strategic location and a diverse mix of tenants, The Seletar Mall’s acquisition by Allgreen Properties marks a significant milestone in enhancing the retail offerings available to Singapore’s heartland communities.
