Singapore: SC Capital’s SCORE+ acquires Rivervale Mall for $170m

Pan-Asian real estate investment firm SC Capital Partners, through its SCORE+ fund, has acquired Rivervale Mall from Boston-headquartered AEW Capital Management for S$230 million ($170 million).

SCORE+ has a mandate of investing in core and core-plus direct real estate assets in gateway cities in Asia Pacific, primarily in Japan, Australia, New Zealand, Singapore, Hong Kong, and South Korea.

Located in a suburban area in the Northeastern region of Singapore, Rivervale has a shopper catchment of nearly 130,000 residents within a 1 km radius and 25 schools within a 2 km radius.

The three-storey retail centre has a gross lettable area of nearly 81,200 square feet and an adjacent four-storey car park annexe.

AEW purchased the mall from CapitaLand Mall Trust in 2015 for S$190.5 million.

SC Capital said the mall recently underwent capital improvements and had an occupancy rate as high as 97 per cent.

The non-discretionary nature of the mall will provide a defensive and stable investment catering to non-discretionary spending customers, well aligned with SCORE+’s strategy, it added.

Rivervale has a current in-place yield of 4.4 per cent and has a low passing rent which is expected to stabilise at 5.2 per cent through positive rental reversions.

“In keeping with SCORE+’s strategy to invest in core-plus direct property assets, we intend to hold Rivervale Mall for the long term due to its defensive and stable cash flow,” said SC Capital’s founder and chairman Suchad Chiaranussati.

SCORE+ targets a gross total return of 10-12 per cent per annum for its investments. The platform has 11 portfolio assets to date, including student accommodation, retail commercial properties, offices and logistics warehouses.

It held a final close of its initial fundraise at $451.5 million in June 2017. The fund targets to conclude by the fourth quarter this year, whereupon it will re-open to investors as an open-end fund.

Besides SCORE+, SC Capital manages five discretionary closed-end funds and two listed REITs, Japan Hotel REIT and TPrime REIT in Thailand.

The $6.2 billion fund manager said it has invested more than $1.9 billion of equity and over $3.8 billion of total capital across 80 transactions, representing 122 assets.

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