8M Real Estate bets on Tanah Merah-Bedok region with $64 mil Sceneca Square buy
By Cecilia Chow
/ EdgeProp Singapore |
Sceneca Square mall and public plaza at Tanah Merah Kechil Link next to the Tanah Merah MRT Station in the east (Picture: MCC Land)
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Singapore-based real estate investment firm 8M Real Estate recently purchased Sceneca Square, the retail podium of Sceneca Residence at Tanah Merah Kechil Link in the east region. The purchase price is $64 million, which works out to $3,161 psf based on the net lettable area of 1,881 sqm (20,247 sq ft). Sakal Real Estate Partners brokered the deal.
The purchase is a departure from 8M Real Estate's decade-long strategy of investing in shophouses, primarily in the prime CBD area, since its inception in 2014. Under the helm of former founder and CEO Ashish Manchharam, 8M made over 30 shophouse investments across 72 shop lots, with total assets under management of more than $1.3 billion.
Manchharam exited 8M in October 2023, having sold his stake in the firm to his existing partner, Hong Kong-based real estate investment firm Crane Capital. According to its website, Crane Capital has investments across eight markets in Asia, with equity under management of US$1.9 billion ($2.48 billion). The firm is helmed by managing partner and CEO Wai Tang.
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Sabom: Our investment stronghold has always been investing in prime district shophouses, and we have a solid track record in that market segment (Photo: 8M Real Estate)
8M Real Estate is now jointly led by Darren Sabom, managing director, investment management, who joined 8M Real Estate in 2020; and Viola Chee, managing director, finance, who has been with the firm since 2018.
According to Sabom, Crane Capital and its investor, a US-based pension fund, will continue to support 8M Real Estate in its shophouse investments "and will commit capital to expanding its portfolio to include larger real estate assets across Singapore."
Sceneca Square marks the first acquisition by 8M Real Estate following Manchharam's exit.
Artist's impression of Sceneca Square will have 20,247 sq ft retail space and will be directly linked to the Tanah Merah MRT Station (Picture: MCC Land)
"Our investment stronghold has always been investing in prime district shophouses, and we have a solid track record in that market segment," says Sabom. He adds that the firm's focus has been on both established and growth locations.
Sceneca Square is a single-storey mall linked directly to the Tanah Merah MRT Station on the East-West Line. Sitting on top of Sceneca Square is Sceneca Residence, with 268 apartments spanning two residential blocks of 14- and 15-storeys. Launched for sale in January 2023, Sceneca Residence is over 78% sold at an average price of $2,079 psf.
According to Sabom, Sceneca Square will cater to the needs of residents in the rapidly redeveloping region with "new-to-market, everyday-necessity retailers and services, as well as self-contained shop-dine-lifestyle options". He considers the Tanah Merah-Bedok region as "the nexus of the east region's transformation", poised to benefit from upcoming developments, such as the 12,000 new homes in the future Bayshore district along East Coast Road, a new residential town with 150,000 homes when the Paya Airbase relocates in the 2030s.
Sceneca Square and Sceneca Residence mixed-use development is scheduled to be completed by 2Q2026 (Photo: Samuel Isaac Chua/EdgeProp Singapore)
The mixed-use development is scheduled for completion sometime in 2Q2026. It is developed by MCC Land (TMK) Pte Ltd, a joint venture company comprising Singapore-based real estate developer MCC Land, a subsidiary of Metallurgy Corporation of China and majority stakeholder, Malaysian developer Ekovest and Singapore-listed Chinese property investment company The Place Holdings.
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A spokesman for MCC Land (TMK) says: "As retail leasing and management is not a core business of the group, the divestment of Sceneca Square presents an opportunity for the group to recycle its capital for future plans." He adds: "We believe that 8M Real Estate's proven strengths in developing and curating lifestyle destinations will greatly enhance the retail experience at Sceneca Square for its immediate residents at Sceneca Residence and the nearby community."
Steven Ming, founder and managing director of Sakal Real Estate Partners, who brokered the sale of Sceneca Square, reckons the easing interest rates will fuel "heightened interest in property investments in the quarters ahead". He adds: "The suburban retail and living sectors are expected to be beneficiaries as bid-ask price gaps start to close."
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