- ION Orchard deal and privatisation offer for Paragon are driving renewed investment interest in Orchard Road’s trophy malls.
- Investor confidence in prime retail assets in Singapore has reached new heights, underscored by the landmark S$1.85bn sale of a 50% stake in ION Orchard – an unprecedented S$5,928psf price tag (or 4.9% yield) for a trophy retail mall.
- - Read this at SGinvestors.io -
Buyers not batting an eye at low-4% cap rates for prime retail malls
REIT transactions executed at high-4% cap rate cross DPU accretion hurdle.
- - Read this at SGinvestors.io -
- Nex Mall (Frasers Centrepoint Trust’s acquisition of 24.5% stake) – executed at a cap rate of roughly 5%, above the valuer’s cap of 4.5%.
Asset sales at low-4% cap rate typically accompanied by redevelopment and repositioning opportunities.
- Read more at SGinvestors.io.
