SINGAPORE (EDGEPROP) - Cuscaden Peak Investments and United Engineers, the joint owners of The Seletar Mall on Sengkang West Avenue, have divested the 99-year leasehold suburban shopping mall to Allgreen Properties for $550 million. The sale of the retail asset was jointly brokered by JLL and Cushman & Wakefield.

The mall comprises six levels of retail and three levels of car park space with 378 parking lots and has a total net lettable area (NLA) of 189,467 sq ft. Thus, the sale price translates into $2,900 psf on the NLA. The 10-year-old mall is directly connected to the Fernvale LRT station and is currently fully tenanted.

According to a joint press release by JLL and Cushman & Wakefield, published on March 7, The Seletar Mall sold following a “competitive” Expression of Interest exercise. Chua Chi Boon, executive vice-president of portfolio management at Cuscaden Peak, says that the sale drew strong interest from local and international real estate players attracted to the growth and resilience of Singapore’s suburban retail assets.

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The robust bidding result is a testament to investors' solid appetite for quality retail assets that are highly resilient and defensive, says Shaun Poh, executive director of capital markets at Cushman & Wakefield. He adds: “The suburban malls have witnessed stellar performance post-Covid, with full occupancy for most malls and strong rental reversion”.

Ting Lim, head of capital markets at JLL, agreed with this sentiment, adding: “The compelling resilience of the retail sector, in addition to the attractive returns profile, underpins the demand for capital partnering retail experts to access the market.”