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.