AEW has sold Rivervale Mall for $230m. SC Capital acquired the centre, its single largest invesment yet, for SCORE+, its open ended fund that invests in core and core plus property across Asia Pacific.
Rivervale Mall is located in Sengkang district. The property is part of what is known as the heartland of Singapore, where the majority of Singaporeans live in goverment built apartment blocks.
Suchad Chiaranussati, SC Capital’s founder and chairman, said, “In keeping with SCORE+’s strategy, we intend to hold Rivervale Mall for the long term simply because of its stable cash flow.”
Rivervale Mall which has a current in place yield of 4.4% has a low passing rent which SCORE+ believes will stabilise at over 5% through positive rental reversions.
Despite the asset recently underwent capital improvements and maintains a high current occupancy of about 97%, such as improving tenant positioning and increasing shopper footfall could be undertaken to improve its already attractive yield.
The investment rationale behind the purchase was that the non-discretionary nature of the mall would provide a defensive and stable investment catering to non discretionary spending customers.
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