Isetan says no success in potential sale of Wisma Atria space

Tan Nai Lun

Published Thu, Dec 16, 2021 · 08:26 AM

ISETAN (Singapore) said it had not gathered enough interest from investors to purchase its space at the Wisma Atria shopping mall on Orchard Road.

The department store operator had in July started an expressions of interest exercise to gather interest from target investors, but the exercise has since "run its course without yielding a positive outcome for the matter to proceed further at this juncture", it said on Wednesday (Dec 15).

The company will continue to explore all other opportunities that can lead to a better yield for the property, including any possible future sales, it added.

Back in January, Isetan had disclosed that it was "exploring its options" regarding its space at Wisma Atria. Later in June, it appointed a marketing agent to size up market interest for the property, as well as to commence exploratory discussions with third parties on the matter.

In a separate announcement on Thursday (Dec 16), the manager of Starhill Global Real Estate Investment Trust (Starhill Global Reit) said it "remains open to continue working with Isetan" to improve the space and explore acquisition opportunities.

The Reit owns about 74 per cent of the total share value of strata lots in Wisma Atria, according to its annual report for FY2021. Its manager had in 2019 issued an expression of interest to potentially acquire Isetan's share in Wisma Atria, but it was not clear what became of the matter since.