8M Real Estate said to be buying about 50 shophouses for around S$500 million

[SINGAPORE] In one of the biggest portfolio conservation shophouse transactions in Singapore, 8M Real Estate is understood to have inked a deal to buy about 50 shophouses for around S$500 million.

The shophouses are in locations such as Duxton Road, Duxton Hill, Tras Street, Craig Road and Neil Road – all within the Tanjong Pagar Conservation Area.

Most of the properties are on land with 61 or 62 years remaining of the original 99-year leasehold tenure. Those on Tras Street have balance land leases of about 67 years.

Market watchers noted that the shophouses, mostly comprising stretches of adjacent units in the above locations, would be in sync with 8M’s focus on placemaking and “creating destination neighbourhoods and lifestyle experiences”, as stated on its website.

The Business Times earlier reported that the portfolio is said to be largely held by Hillington International, a British Virgin Islands-registered company that indirectly owns Singapore-registered Arcc Holdings, led by veteran property investor Tony Chen.

The shophouses within the portfolio are individually held by separate groups of investors, including Chen himself and his brother Robert.

The sale is expected to be completed in the first quarter of next year.

BT understands the shophouses being sold add up to about 180,000 square feet (sq ft) of built-up area. For 8M, the acquisition will substantially boost its existing portfolio of more than 70 properties valued at over S$1.5 billion, offering upwards of 349,000 sq ft of leasable space.

These consist largely of conservation shophouses but also include Sceneca Square, a single-storey strata retail mall next to Tanah Merah MRT station acquired by 8M in 2024.

The mall was developed as part of a mixed-use project including the 268-unit Sceneca Residence.

Other properties in 8M’s portfolio are in locations such as Keong Saik Road, Craig Road, Tanjong Pagar Road, Stanley Street, Boat Quay and Jalan Besar.

The Singapore-based property investment and management company, established in 2014, is wholly owned by Hong Kong-based Crane Capital, which is backed by the Washington State Investment Board, a US pension fund primarily for public employee retirement funds.

For the vendor, the sale of the shophouses has been seen as part of a divestment strategy. The next generation of the Chen family may not be keen on the shophouse investment and management business, instead preferring to deploy the sale proceeds to other businesses.

Chen engaged EY-Parthenon, the global strategy consulting arm of EY, to conduct the sale process for the shophouse portfolio.

The portfolio includes a row of seven shophouses at 73 to 79 Duxton Road, next to the Duxton Reserve hotel. They are on sites with 99-year leases that started from September 1988, leaving a balance of nearly 61 years.

Another asset comprises four shophouses at 97 to 100 Duxton Road, just off Neil Road. Also part of the bundle are a pair of shophouses at 69 and 71 Neil Road. Both sets of properties are on sites with a balance of about 61 years and eight months.

A row of five shophouses, at 56, 58, 60, 62 and 64 Tras Street, is also in the collection. They are on sites with 99-year tenures from March 1995, leaving a balance of about 67 years and four months.