Leaving out AMK Hub makes Mercatus’ retail portfolio a more digestible acquisition target

Kalpana Rashiwala

Published Tue, Sep 13, 2022 · 05:50 AM

The state lease for the land on which AMK Hub sits stipulates that not less than 50 per cent of the gross floor area of the development must be used by SLF, NTUC, its affiliates and related organisations, public institutions and non-profit organisations. PHOTO: MERCATUS CO-OPERATIVE
Yunnan Gold (Mauritius), held by China Investment Corporation and PGIM Real Estate., has the right of first refusal on Mercatus' 50 per cent stake in Nex in Serangoon Central. PHOTO: MERCATUS CO-OPERATIVE

ALMOST 3 months have passed since Mercatus Co-operative – substantially owned by NTUC Enterprise – was said to have bundled 4 of its retail assets in Singapore for a potential sale “in excess of S$4 billion”. Yet, there are no signs of a deal close to being done.

The portfolio is appealing, with a strong concentration of suburban malls – a relatively resilient segment of the retail property market, catering to the daily needs of shoppers living in Singapore’s heartlands.

Jurong Point, AMK Hub in Ang Mo Kio, and a half-stake in Nex in Serangoon Central are “fortress retail” assets integrated with MRT stations and bus interchanges, with 1.36 million sq ft of retail space. (The fourth asset comprises levels 1 and 3 of Thomson Plaza, adding up to 110,000 sq ft; this space is branded as “Swing By @ Thomson Plaza”. Thomson Plaza is a stone’s throw from Upper Thomson MRT station, which opened last year.)

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