Park Mall will be redeveloped into a commercial development comprising two office blocks with an ancillary retail component, the building’s owner said on Monday (Jun 29).
This follows the sale of the office and retail complex at Penang Road near the Orchard Road shopping belt for S$411.8 million, Suntec Real Estate Investment Trust (Suntec REIT) said in a statement.
The new buyer is a joint venture company, Park Mall Investment, in which Suntec REIT has a 30 per cent stake.
The other shareholders of the joint venture are the SingHaiyi group, a property firm with interests in the US and Singapore, and a firm linked to Mr Gordon Tang, who is a non-executive director of SingHaiyi.
Park Mall, which has a large number of lifestyle and home furnishing shops, is more than 40 years old. It has a remaining land lease tenure of 53 years. Suntec REIT acquired Park Mall in 2005 for S$245.1 million.
Mr Yeo See Kiat, chief executive officer of Suntec REIT’s management company, said the divestment will allow Suntec REIT to free up capital for other investments and provide greater financial flexibility.
“The redevelopment will unlock the underlying value of the property by further enhancing the gross floor area of the site. In addition, Suntec REIT will have the ability to own part of the redeveloped property by acquiring one office block upon completion,” he added.
Source : Channel NewsAsia – 29 Jun 2015