Liang Court Mall one of the iconic shopping places in Singapore is all set to be sold for S$400 million. At its heyday this mall was very popular among Japanese expat population thanks to the popular Daimaru department store and supermarket.
There are media reports that the present owner, a PGIM Real Estate entity has entered into a put-and-call option agreement with CapitaLand and CDL (City Developments Ltd).
Ascott Residence Trust, the listed unit of CapitaLand already has Somerset Liang Court Singapore a serviced residence at the location.
CDLHT (CDL Hospitality Trusts) an indirect subsidiary of CDL owns Novotel Singapore Clarke Quay. These two properties along with the Liang Court Mall make up the Liang Court Complex.
There have been speculations in the market for the last few years that there were talks for joint develop between the three parties at the site of the mixed-development complex that was completed three decades ago.
According to market experts the sale will lay the path for redevelopment as the ownership would now rest on two companies instead of three at present.
Located besides the Clarke Quay riverside area the complex stands next to Fort Canning station part of the Downtown line.
It is also in the close vicinity of Clarke Quay MRT station part of North-East Line.
As per the 2014 Master Plan of the Urban Redevelopment Authority, this site has been zoned for residential and commercial use and enjoys a high plot ratio of 7.6.
There is 58 years remaining on its 97 years lease tenure that started back in April 1980.
The complex was developed in early 1980s by Wuthelam Group owned by business tycoon Goh Cheng Liang.
It included luxury apartments, Hotel New Otani and Liang Court Shopping Centre.
In the year 1992 Wuthelam Group floated Liang Court Holdings taking ownership of the mall and the Regency apartments.
Wuthelam sold 58.9% stake in Liang Court Holdings in the year 1999 to Pidemco Land which had then been a part of Singapore Technologies.
On the takeover the company changed its name to Somerset Holdings. The year 2000 saw the merger between DBS Land’s Ascott and Somerset Holdings.
The merged entity was known as Ascott Group and in 2006 it sold the 6-storey Liang Court Mall which was bought by Asian Retail Mall Fund II.
At present this property is a part of by PGIM Real Estate which belongs to PGIM Inc. It holds the property through its open-end private investment vehicle PGIM Real Estate Asia Retail Fund. Prudential Financial Inc. the global investment management business is the owner of PGIM Inc.
It must be mentioned that Ascott had in the year 2016 spun off Ascott Residence Trust where an apartment tower at the Liang Court Complex was a part of this exercise.
As far as Hotel New Otani is concerned Wuthelam has sold it to an entity owned by Lehman Brothers in 2004.
They further roped in Accor the French hotel chain to manage this property under its brand Novotel.
CDLHT bought the hotel in 2007 where it paid nearly S$552,000 per room totalling S$219.8 million. Millennium & Copthorne Hotels a CDL’s hotel arm listed in London owns CDLHT.