Keppel Land acquires 22.4% interest in 112 Katong
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Keppel Corp’s property arm Keppel Land has acquired a 22.4% interest in 112 Katong Mall from BHG Holdings, Imagine Properties and Perennial Singapore Investment Holdings for $51.4 million in cash. The remaining 77.6% stake is held by a fund managed by Alpha Investment Partners, Keppel Land’s property fund management vehicle.
Perennial Real Estate’s stake in the mall amounts to 1.46% or $3.4 million. Along with the divestment of its stake in the asset, Perennial Real Estate is also selling its 23% stake in the trust manager of I12 Katong Mall for $1 a share. A Perennial-led consortium had purchased the former Katong Mall for $247.55 million in November 2009. The mall underwent a $70 million asset enhancement exercise that increased its net lettable area by 20% to 206,000 sq ft today.
“The investment in 112 Katong will add to our quality portfolio of retail and mixed use developments,” said Ang Wee Gee, CEO of Keppel Land in a statement. “We will focus on strengthening the mall’s positioning as a lifestyle and dining destination in the East.”
Following the acquisition, the mall will be managed by Keppel Land Retail Management headed by Michael Leong, a property veteran with 30 years’ experience in the retail sector. Leong was the former CEO of Array Real Estate, in which Keppel Land acquired a 75% stake in December 2014. Array’s Leong was previously executive director of Guthrie GTS, and over the years, has been instrumental in the development and mall management of 3 million sq ft of retail properties in Singapore such as Jurong Point Shopping Centre, Heartland Mall, Century Square, Tampines One and Tiong Bahru Plaza.
Questions & Answers
Q.What is the total value of the 112 Katong Mall based on this acquisition?
What is the total value of the 112 Katong Mall based on this acquisition?
The article states Keppel Land acquired a 22.4% interest for $51.4 million. By extrapolating, the full value of the mall would be approximately $229.46 million. This is slightly less than the 2009 purchase price.
Q.Who manages the majority stake in 112 Katong Mall?
Who manages the majority stake in 112 Katong Mall?
The remaining 77.6% stake in 112 Katong Mall is held by a fund. This fund is managed by Alpha Investment Partners, which is Keppel Land’s property fund management vehicle.
Q.What is the background of the new manager for 112 Katong Mall?
What is the background of the new manager for 112 Katong Mall?
The new manager is Michael Leong, head of Keppel Land Retail Management. He has 30 years of experience in retail property, previously leading Array Real Estate and serving as executive director at Guthrie GTS.
Q.How much has the mall's usable area increased since its last purchase?
How much has the mall's usable area increased since its last purchase?
The mall underwent a $70 million asset enhancement exercise. This increased its net lettable area by 20%, bringing it to a current size of 206,000 square feet.
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