CBRE is pleased to launch the Public Tender sale of Compass Point Shopping Centre, a major suburban shopping mall located in the heart of Sengkang New Town and adjacent to Sengkang MRT station and bus interchange.
The 5 storey shopping centre comprises approx 269,546 sq ft arranged over 5 storeys (B1 to Level 4 inclusive). There are 428 car park lots in B2 to B4. Anchor tenants include Metro, Best Denki, Cold Storage, National Library and Kopitiam.
Compass Point received its TOP on 18 May 2002. It was developed by Frasers Centrepoint.
CBRE is offering 100% of the shares which Sengkang Mall Limited owns in the 5 SPVs which own 100% of Compass Point Shopping Centre. Sengkang Mall Limited currently has 2 series of bonds which are outstanding, namely S$201 mil secured fixed rate senior bonds due 2012 (the “Senior Bonds”) and S$134mil secured fixed rate junior bonds due 2012 (the “Junior Bonds”). The Senior and Junior Bonds are secured against, inter alia, Compass Point Shopping Centre. Under the bond documentation, upon occurrence of certain events, Sengkang Mall Limited is required to dispose of the shopping centre so that it is in possession of funds to effect full redemption of both the Senior and Junior Bonds on their respective maturity dates in November 2012.
Compass Point Shopping Centre offers the new owner potential to carry out Asset Enhancement Initiatives which could increase the NLA, increase the rents and in turn increase the Net Operating Income (NOI).
“We expect there to be very strong interest from potential purchasers. Suburban malls are a very highly sought-after asset class and the opportunity to buy one is very rare. This asset class has seen yield compression over the years from 6 to 7 per cent 10 years ago to sub 5 per cent now.” said Jeremy Lake, Executive Director, Investment Properties.
While there is no official asking price, CBRE anticipates that the successful tender price could be in excess of $645 million which reflects approximately $2,393 psf on the existing NLA and a net yield of about 4.5 per cent based on the estimated NOI of almost $29 million.
The tenure is 99 years from 30 April 2000. The property is strata-titled and Compass Point Shopping Centre comprises 134 strata lots with a share value of 73,604/10,000 shares (i.e. 73.6 per cent). The strata floor area is 38,473 sq m or approximately 414,119 sq ft. Compass Point Shopping Centre is almost 100 per cent occupied. The current gross rent is about $11.71 psf per month.
Next door to Compass Point Shopping Centre is Compass Heights which comprises 536 apartments.
The public tender closes on 3 May 2012.
Disclaimer:
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world's largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
