Thursday, May 17, 2012

Compass Point sold for $519m or $1,925 psf

Business Times: Thu, May 17
A JOINT venture between insurance giant Prudential UK and Frasers Centrepoint has bagged Compass Point mall in Sengkang for $519 million after its tender bid was accepted by the seller.

The price works out to $1,925 per square foot (psf) based on the net lettable area of 269,546 sq ft and a net yield of about 5.6 per cent based on the mall's estimated net operating income of $29 million.

Earlier, entities linked to Prudential's Asia Property Fund (APF) formed an 81.01:18.99 joint venture with Frasers Centrepoint - Gemshine Investments - to bid in the tender for Compass Point, which closed on May 3.

Gemshine was either the highest bidder or sole bidder in the tender, reckon market watchers. In any case, it had the right of first refusal (ROFR) to buy the mall assigned to it by APF, as reported earlier in BT Weekend.

The five-storey mall, next to Sengkang MRT Station, is operating at nearly full occupancy. Anchor te-nants include Best Denki, Cold Storage, Metro, National Library Board and Kopitiam.

Frasers Centrepoint, formerly known as Centrepoint Properties, developed the mall at a total cost of about $210 million before securitising it in November 2002 for $335 million.

Under that exercise, $134 million of junior bonds and $201 million of senior bonds (the latter re-presenting pure debt) were issued. The junior bond holders get to keep the full upside of any capital appreciation when the property is eventually sold.

APF and Frasers Centrepoint jointly control all but $50,000 of the $134 million junior bonds; the split between them is 81.01: 18.99, exactly the same proportion as their ownership of Gemshine...
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Team Marshe
Martin Koh/ Sherry Tang
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