Perennial sells stake in Chinatown Point Mall entities for $225m

The proportionate stake of the net proceeds is expected to be $125.3m.

Perennial Real Estate Holdings (Perennial) has entered into a share purchase agreement to fully divest its 100% interests in entities that own the retail mall and four strata office units in Chinatown Point at a consideration of $225m.

Perennial inked the deal through its subsidiary Perennial Chinatown Point LLP (PCP LLP) with PAR Chinatown Point, which is a wholly-owned vehicle of a fund managed by Pan Asia Realty Advisors (Singapore), a joint venture between Mitsubishi Estate Co., and capital markets and management group CLSA.

The consideration was based on an agreed property price of $520m, which translates to $2,450 psf on total net lettable area (NLA) of Chinatown Point Mall. Perennial is the largest investor in Chinatown Point Mall with a 50.64% effective interest, and its proportionate stake of the net proceeds to be received is expected to be approximately $125.3m.

The other investors of Chinatown Point Mall include Singapore Press Holdings, FPTM, and some other private investors.

“The transaction is in line with Perennial's active capital recycling strategy to rebalance
its portfolio, enhance its financial flexibility and maximise its returns to shareholders,” the firm explained in a statement.

The transaction is expected to close on or about 6 June 2019. Following the completion, Perennial’s wholly-owned subsidiary, Perennial (Singapore) Retail Management, will continue in its role as the property manager of Chinatown Point Mall.

In July 2010, Perennial Real Estate, a wholly owned subsidiary of Perennial, syndicated a consortium of investors to form PCP LLP to acquire Chinatown Point Mall at a total purchase consideration of $250m. As a result, a major redevelopment exercise was carried out costing over $91m.