A record price is expected from the sale of Singapore’s Jurong Point suburban shopping mall.
Mall owner/manager Mercatus Co-operative is poised to buy the property for S$2.2 billion (US$1.57 billion), reports Singapore Business Review.
DBS Group Research says this implies a robust price of $3343 psf and a 4.2 per cent net yield.
“Based on our analysis of comparative valuations of similar-sized suburban malls across Singapore, at the transacted price, the returns for Jurong Point will be one of the tightest yields achieved for a sizeable suburban mall,” says the research company.
“We believe its entrenched position within Jurong West with a sizeable population catchment also gave Mercatus further confidence in the ability of the mall to continue attracting tenants amid strong footfalls and sales.”
DBS Group Research says the sale proves that the market is receptive to premium prices for properties with quality and scalability.
Next to Boon Lay MRT station and bus interchange, Jurong Point mall opened on December 5, 1995. It has 450 stores and service outlets over nine floors, with five anchor tenants.