AEW Rivervale Mall SOLD to SC Capital Partners for S$230m

AEW Rivervale Mall SOLD to SC Capital Partners for S$230m

AEW, the property fund manager from the United States sold Sengkang’s Rivervale Mall for S$230 million according to media reports.

Private equity real estate firm SC Capital Partners based out of Singapore and where Suchad Chiaranussati is the chairman bought this property. Mr Chiaranussati is the husband of hotel tycoon Kwek Leng Beng’s niece.

Rivervale Mall has 81,193 sq ft net lettable area and going by the transaction cost the rate of this property translates to S$2,833 psf. Given the existing leases in this mall the rental yield is 4% of the price paid which reflects yield on the higher side.

The mall is located advantageously around the corner of Rivervale Drive and Rivervale Crescent. The 99-year lease for the property started on the 6th of December 1997 and thus it has 78 years remaining on its lease tenure.

Standing three levels tall this mall has an adjacent four-level carpark that can accommodate up to 170 cars.

AEW has purchased the Rivervale Mall in the second half of 2015 for S$190.5 million.

CapitaLand Mall Trust (CMT) had sold the mall back them and upon acquiring they had undertaken renovation works in 2016.

Among the renovation works was increasing the areas for F&B use in the mall’s lettable space. They had also invested in the lighting and flooring of the ball.

Following renovation, the share of F&B tenants in the mall’s lettable areas has increased from 20% to 30%.

Occupying almost 22,000 sq ft, NTUC FairPrice is the anchor tenant in this building. Other tenants at this mall provide beauty, medical and education services and occupy about 10% of the net lettable area.

AEW Assets in Singapore

After the sale of Rivervale Mall would have three other assets remaining in its Singapore portfolio which include 55 Market Street, Twenty Anson and a unit in Prudential Tower. All these three fall in the Central Business District.

AEW had bought the Twenty Anson in June 2018 from CapitaLand Commercial Trust in a deal of S$516 million.

The rate turned out to be around S$2,503 psf going by its net lettable area which was 2.7% rental yield back then.

The commercial property is located close to the Tanjong Pagar MRT Station and has 88 years remaining on its tenure.

This was followed with 55 Market Street in July 2018 which they bought from Frasers Commercial Trust. The property is located in Raffles Place financial district and was acquired for S$216.8 million.

The 16-storey tower has a 999-year leasehold tenure. Going by the price AEW paid S$3,020 psf for the net lettable area or 1.7% of net property income.

They also acquired the ground level at Prudential Tower in 2017 which is located near Cecil Street and Church Street. They paid S$18.95 million for that acquisition or S$3,315 psf strata area.

The said property had 77 years of its lease tenure remaining back then.

SC Capital recently unveiled the winning design for an office and hotel joint venture in Australia for A$700 million which translates to S$672 million.

The 55-storey project will come up in Sydney at 4-6 Bligh Street. A part of Sydney’s Central Business District it is scheduled to be completed in 2022.

Hyatt Group would be operating the hotel under the Andaz brand.

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