Compass Point Shopping Centre is up for sale by public tender.
Sengkang Mall Ltd, the owner of the mall, revealed that the proceeds from the sale will go towards a full redemption of its outstanding bonds totalling $335 million due in November 2012.
The $201 million secured fixed rate senior bonds and $134 million secured fixed rate junior bonds are secured against Compass Point Shopping Centre.
There is no official asking price for the five-storey mall located in Sengkang New Town.
Sale manager CBRE says it “anticipates that the successful tender price could be in excess of $645 million”. This works out to approximately $2,393 per square foot on the existing net lettable area and a net yield of about 4.5 per cent based on the estimated net operating income of almost $29 million.
CBRE is offering 100 per cent of the shares which Sengkang Mall Ltd owns in the 5 SPVs (special purpose vehicles) which own 100 per cent of Compass Point Shopping Centre.
“This asset class has seen yield compression over the years from 6 to 7 per cent 10 years ago to sub 5 per cent now.” said Jeremy Lake, Executive Director, Investment Properties.
Compass Point Shopping Point has about 269,546 square feet over five storeys and is almost 100 per cent occupied, with anchor tenants including Metro, Best Denki, Cold Storage, National Library and Kopitiam. The current gross rent is about $11.71 per square foot per month.
The shopping mall occupies 134 strata lots — with a share value of approximately 74 per cent — of the strata-titled Compass Point property.
The tenure is 99 years from April 30, 2000.
Frasers Centrepoint developed Compass Point and holds a stake in the property, which received its TOP (temporary occupation permit) on May 18, 2002.
The public tender closes on 3 May 2012.
Source : Channel NewsAsia – 21 Mar 2012