Big Box Mall Singapore Sold to Perennial Led Consortium

Big Box Mall Singapore Sold to Perennial Led Consortium

In a major deal a Perennial Real Estate Holdings led consortium is all set to acquire a former Big Box Mall Singapore for S$118 million.

The commercial property is located along Jurong East. The timing of this deal is significant as the Jurong Lake District is being seen as a potential for the next Central Business District.

As per reports in the media the consortium is all sent to pump in more than S$70 million into this site and redevelop it into a business park.

This is likely to be named Perennial Business City and shall mark Perennial’s entry into this new asset class.

PRE 15, the wholly-owned subsidiary of Perennial Real Estate Holdings has already exercised the call option with the Big Box Pte Ltd. They had signed the put and call option agreement previously.

In a press statement it was revealed that PRE 15 would have majority 51% state in the promised business city with others in the consortium holding the remaining stake.

Interestingly Kuok Khoon Hong, Chairman of Perennial would also have stakes in this through his own investment vehicle.

Big Box Mall Redevelopment Plan – Perennial Business City

The redeveloped site would add an additional hundred thousand square feet of floor space taking it from 1.4 million sq ft to 1.5 million sq ft. exercising the maximum allowable floor space for the site with 2.5 Gross Plot Ratio.

This will increase the net lettable area to 1.1 million sq ft from the existing 1 million sq ft.

In an official release it was announced that once developed Perennial Business City would have large floor plates along with large car parking space.

A large rooftop garden is also on the cards along with an amphitheater. This would mark a more urbane improvement from Big Box’s current usage where it is mostly used for warehousing.

Perennial has already applied and obtained confirmation from JTC for rezoning the Big Box site from its current Business 1 (White) to Business Park use.

The 8-storey Big Box Mall site that was completed in 2014, encompasses a land area of 606,600 sq ft. Located in the precinct of the Jurong Lake District this has primarily been used for warehouse retail.

Big Box Mall Site – Excellent Business Location

The Big Box Mall site is strategically located and in close vicinity of the International Business Park and the One-North.

There are several commercial and retail developments nearby including IMM, Westgate, Jem and JCube. Genting Hotel Jurong is also not far away from this site.

Biomedical Sciences and Healthcare companies catering to Ng Teng Fong General Hospital and Jurong Community Hospital have been the main tenants at this site.

Big Box Sale Completion Around February 2021

Big Box Pte Ltd.’s receivers and managers had launched an EOI (expression of interest) exercise in April 2019 for this site.

This EOI was preceded by a voluntary liquidation announced by Big Box in September 2018. This liquidation was a part of TT International’s credit restructuring which owned 51% state in Big Box Pte Ltd.

Perennial Real Estate Holdings led consortium is expected to complete this transaction in February 2021 and the redevelopment works is expected to be completed by Q4 of 2021.

Pua Seck Guan, Chief Executive at Perennial said that the group is pleased to have got the opportunity for redeveloping this asset and leveraging the increased demand for business parks.

He added that Perennial Business City would add to Jurong Lake District’s vibrancy and help it move ahead and become West Singapore’s largest central business district

CBRE Singapore has been hired by Perennial to market Perennial Business City leases. The potential tenants at this business park would include FMCG, Information and Communication Technology, Financial businesses and business in the field of Biomedical Sciences.

Demands is High for Business Park

Perennial’s timing of the deal is likely to favour it. A research report released by the DBS Group stated that there would be increased demand for business parks and other industrial spaces such as logistics, premium value manufacturing and start-ups as there is likely to be an in-flow for deep-tech companies.

The report also stressed on the fact that supply of warehouses and business parks is facing severe shortage despite the fact that 700,000 square metres of commercial space is likely to be available in 2021.

The Urban Redevelopment Authority has envisioned Jurong Lake District to become biggest regional centre in Singapore outside the Central Business District.

This will create new employment opportunities apart from adding recreational activities and amenities in Singapore’s western part. The Master Plan for this district underwent enhancement 2017.

This enhancement includes the plans for creating the terminus for Kuala Lumpur-Singapore High Speed Rail in Jurong East. However, this project has since then been halted.

URA has been actively pursuing the development of Jurong Lake. In the month of October JLL has been appointed as the marketing agents with the mandate to promote the district.

The 410 hectares district has four important precincts and these include International Business Park, Jurong Gateway, Lakeside East, a new mixed-use precinct and Lakeside West popular for recreational activities.

Commercial Property For Sale
Office For Sale
Hotel For Sale
Commercial News
Shophouse For Sale
En Bloc Commercial
Contact Us
Share With Others