CityDev acquires Central Square for $315m

The move will be part of the redevelopment of the Central Mall properties.

Property developer CityDev will acquire Central Square for $315m as part of plans to redevelop its Central Mall properties and the surrounding area into a mixed-use lifestyle hub.

Through its subsidiary, CDL Constellation, the group has entered into a put and call option agreement to acquire Central Square from Far East HTrust (FEHT) for $313.2m and the reversionary leasehold interest of about 1.5 years from OPH Riverside, a subsidiary of Far East Orchard, for $1.8m.

CityDev group CEO Sherman Kwek said, "The strategic acquisition of Central Square crystallises our master plan to shape the precinct's transformation into a new and vibrant lifestyle hub. This rare placemaking opportunity augments our role in rejuvenating the Singapore River precinct and aligns with our enhancement strategy to unlock the latent value of our matured assets. With the enlarged site, we can take a multi-faceted approach to the planning and design of the entire area and shape the public realm to maximise value for all stakeholders in this precinct. The Central Mall and Central Square redevelopment project marks our third rejuvenation initiative in the Central Area to transform the cityscape."

The manager of FEHT said proceeds may be used to pare down debt, fund potential acquisitions, for distribution to holders of the stapled securities, and to finance general corporate and working capital requirements.