China Investment Corp, PGIM’s 50% stake in Nex mall up for sale; asking about S$1.2 billion 

[SINGAPORE] A half stake in the popular Nex shopping mall in Serangoon Central is understood to be on the market with a price tag of S$1.2 billion to S$1.25 billion.

The asking price for the 50 per cent stake mostly owned by sovereign wealth fund China Investment Corp, based on 100 per cent interest at S$2.4 billion to S$2.5 billion, is higher than the S$2.26 billion valuation for the mall as at Sep 30.

Frasers Centrepoint Trust ( FCT ), which owns the other half of Nex, has the right of first refusal (ROFR), which market watchers expect it will exercise to buy out the rest of the property.

The Business Times understands that a private expression of interest (EOI) exercise for the half stake closed last week, attracting a few bids. Cushman & Wakefield and JLL are said to have discreetly approached a select list of potential buyers to participate in the low-key bidding exercise.

Nex is considered one of the best-performing malls in Singapore and market watchers expect FCT to exercise the ROFR for the 50 per cent stake it does not currently own.

“This is assuming there are no ‘wild bids’, typically associated with non-institutional parties,” said a seasoned market watcher. “In such a case, it might not make sense for FCT to acquire the balance 50 per cent,” added the market watcher.

He thinks the EOI is likely to have drawn interest from CapitaLand Integrated Commercial Trust, Mapletree Pan Asia Commercial Trust and The Elegant Group, which is linked to Chinese businessman  Zhao Zhichao.  Another industry player suggested Hong Kong-listed Link Reit may also be a contender for the asset.

The 16-year-old Nex has seven retail levels including two basement levels. It is located above the Serangoon MRT interchange station, serving the Circle and North East Lines. It is also integrated with the Serangoon Bus Interchange. Serangoon Polyclinic is directly linked to Nex via an underpass.

Nex was developed on a site with 99-year leasehold tenure from Jun 26, 2008, and has a remaining land lease of about 80 years and eight months.

Prior to the start of a S$90 million asset enhancement initiative (AEI) in May this year, the mall’s net lettable area (NLA) was 634,631 sq ft, including 17,562 sq ft of community/sports facilities space.

Under the AEI, about 62,000 sq ft of gross floor area will be converted from carpark to retail and office space, adding about 44,000 sq ft of NLA.

The first phase of the AEI is scheduled for completion by the end of this year. The second phase starts in January 2027, with completion expected in the first quarter of 2028.

When the latest valuation of Nex, at slightly over S$2.26 billion, was released by FCT in its FY2026 results announcement, the per square foot (psf) on NLA was not listed, as the NLA is pending a final survey due to the ongoing AEI works.

A year earlier, as at Sep 30, 2025, Nex was valued at S$2.14 billion or S$3,374 psf on NLA.

Nex is held by Singapore-incorporated Gold Ridge. FCT has a 50 per cent effective stake in Gold Ridge, with Mauritius-registered Yunnan Gold (Mauritius) holding the other half.

PGIM’s lasting role

CIC owns most of the Mauritius company, with the remaining minority stake held by PGIM’s real estate investment group. PGIM is the global asset management business of NYSE-listed Prudential Financial. This business unit of PGIM, formerly known as Pramerica Real Estate Investors, developed Nex and over the years sold down its stake, retaining a small share to ensure its asset manager role in the mall.

In 2008, Gold Ridge, which was then fully owned by funds linked to Pramerica Real Estate Investors, clinched the 99-year leasehold Serangoon Central site at a tender conducted by the Land Transport Authority. Its top bid of S$800.9 million worked out to S$850 psf per plot ratio.

The break-even cost was estimated at slightly below S$2,000 psf of NLA, and analysts estimated the total investment in the project at about S$1.3 billion.

Ownership history

Based on an earlier media report, Pramerica Real Estate Investors subsequently sold a 50 per cent stake in Gold Ridge around 2010 to CIC for an undisclosed sum.

In 2012, a fund linked to Pramerica Real Estate Investors sold the other half stake to Mercatus Co-operative for S$825 million.

“Between all these transactions, PGIM always owned a small effective stake. That's why they have held on to the asset management of Nex,” said an industry observer.

PGIM declined to comment on this story.

In 2023, Mercatus divested its 50 per cent interest in Gold Ridge. Under that deal, FCT bought a 25.5 per cent effective stake and its sponsor Frasers Property Ltd ( FPL ), a 24.5 per cent interest. That transaction valued Nex (on 100 per cent interest) at S$2.08 billion. In the following year, FPL sold its stake in Gold Ridge to FCT.

Deal brewing for Frasers Tower?

Separately, FPL is expected to narrow down a potential buyer to whom it will grant exclusive due diligence for its half stake in Frasers Tower near Tanjong Pagar MRT station.

The 38-storey Grade A specification office building with a three-storey cascading retail podium, was valued at S$2.12 billion, or around S$3,100 psf on an NLA of about 684,600 sq ft, as at Sep 30, 2025. This translates to slightly over S$1 billion for FPL’s half stake.

FPL recently sold the 304-room Capri by Fraser China Square hotel in the South Bridge Road/Cross Street area for S$328 million to YTL Hotels and a private fund managed by BlackRock. The deal was brokered by JLL. The property has been rebranded as Hotel Stripes Singapore Chinatown, Autograph Collection, operated by Marriott International.