Singapore’s Perennial-led group sells mall to Mitsubishi-CLSA vehicle for $383m

Chinatown Point Mall in Singapore

Singapore’s Perennial Real Estate Holdings-led consortium  has divested its entire stake in Chinatown Point Mall for $383.25 million (S$520 million), the company announced in a statement on Monday.

Perennial sold its entire stake to PAR Chinatown Point, a vehicle managed by Singapore’s Pan Asia Realty Advisors, which is a joint venture of Mitsubishi Estate and investment group CLSA.

The consortium includes Singapore Press Holdings (SPH)  and other undisclosed private investors. SPH said, in a separate filing, that it expects to record gains of approximately S$10 million in its books following the transaction.

Singapore-listed Perennial is the largest shareholder in Chinatown Point owning about 50.64 per cent stake in the integrated development that includes four strata offices and a mall. SPH’s wholly-owned subsidiary, CT Point Investments Pte Ltd, held a direct stake of 30.68% in Perennial Chinatown Point LLP and an indirect stake in the CP entities.

The Chinatown Point Mall is valued at $1,805 (S$2,450) per square foot on the total nettable area. The sale is slated to complete on June 6.

Perennial chief executive officer Pua Seck Guan said, in a statement, the divestment is aligned with the company’s active capital recycling strategy in an effort to rebalance its portfolio and maximising returns for its shareholders.

In July 2010, Perennial formed a syndicated consortium – Perennial Chinatown Point LLP – to acquire the Chinatown Point Mall for $184.2 million (S$250 million).

Following the acquisition, the company has put in of $67 million (S$91 million) towards the redevelopment in the project.

Two Perennial subsidiaries were appointed as a property manager and asset manager in the Chinatown Point Mall.

Perennial Real Estate Holdings is an integrated real estate developer focused on Singapore and China. The company also has presence in Ghana and Malaysia.

Perennial’s real estate portfolio includes Capitol Singapore, AXA Tower, and TripleOne Somerset in Singapore.

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