Pramerica Real Estate Investors (Asia), the Asian real estate investment arm of US financial services group Prudential Financial, has placed the top bid of S800.9 million ($580 million, €367 million) for a mall site above a MTR and bus station in Singapore.
According to Singapore’s Land Transport Authority, which is handling the government tender, Pramerica’s bid is about S74 million more than the second highest offer of S772 million by Australia’s Lend Lease Group. The other offers were S750 million by Frasers Centrepoint, S702 million by a joint venture of HSBC, CapitaMall Trust, NTUC Income Insurance and NTUC FairPrice ($702 psf ppr); S426 million by a tie-up between City Developments, Hong Leong Holdings and TID, and S228 million by Peak Properties.
The Singapore government offered a 99 year lease on the space, to be developed on about 270,000 square feet above the Serangoon MRT station on Singapore’s North East line. A second station which will be linked to the Circle Line is currently being constructed and will be opened next year. The site also contains a bus station.
According to the LTA the closing date of the tender was March 26.
Pramerica Asia chief executive Victoria Sharpe told Singapore’s Business Times Thursday that the group is planning a full retail development on the station. She added that the asset is likely to be held by several funds managed by Pramerica including the Asia Property Investment Fund and its Asian Retail Mall Fund. The retail mall fund already owns four malls in Singapore.
Pramerica Real Estate Investors (Asia) was established in 1994 and today it manages investments across Asia in Singapore, Hong Kong, Malaysia, Indonesia, Thailand, the Philippines, South Korea, Japan and China. As of September 2007, Pramerica Real Estate Investors managed $40.7 billion for 400 global clients.