Cuscaden Peak Investments and United Engineers have sold The Seletar Mall (TSM) in Singapore to Allgreen Properties for S$550m (€377m).

Cuscaden Peak Investments is a subsidiary of Cuscaden Peak - a consortium made up of Hotel Properties, Mapletree Investments and CLA Real Estate Holdings.

The co-owners said the divestment of the 190,000sqft asset was part of their active capital recycling strategy to enhance shareholder returns.

Chua Chi Boon, executive vice president, of portfolio management at Cuscaden, said: “The suburban retail property market in Singapore has been a key beneficiary of a robust post-COVID rebound, as strong demand from both tenants and shoppers underpins healthy positive rent reversions for well-located malls with attractive retail offerings like TSM.”

The timing of this divestment was opportune, drawing strong interest from prominent local and international real estate players attracted to the growth and resilience of Singapore’s suburban retail assets, he said.

The transaction with Allgreen Properties, part of Asia’s property owner, the Kuok Group, was jointly brokered by JLL and Cushman & Wakefield.

Shaun Poh, executive director of Capital Markets at Cushman & Wakefield, said the ”robust bidding” for the centre was a testament to the appetite from investors for quality defensive retail assets.

Ting Lim, head of capital markets at JLL, said domestic and global capital sought exposure in the tightly held retail investment market for the sector’s resilience and its strong returns profile.

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