28 December 2022
MERCATUS DIVESTS TWO RETAIL ASSETS IN SINGAPORE FOR S$2.161 BILLION
- Divestment of Jurong Point and Swing By @ Thomson Plaza is in line with Mercatus’ strategy to refocus on certain types of core assets, as a result of its strategic review
- Mercatus will continue to retain full ownership of AMK Hub, with Link REIT’s subsidiaries as the new asset and property managers
Mercatus Co-operative Limited (“Mercatus”, together with its subsidiaries, the “Group”) announced today that its subsidiaries have entered into sale and purchase agreements with various subsidiaries of Link Real Estate Investment Trust (“Link REIT”) to divest the Group’s 100% interests in Jurong Point and Swing By @ Thomson Plaza (“Divestment”) for a total consideration of S$2.161 billion. Link REIT is the largest REIT in Asia. It is managed by Link Asset Management Limited, a leading real estate investor and asset manager in the world.
In conjunction with the Divestment, Link Asset Management Limited has committed to offering employment, on terms and conditions no less favourable, to all affected employees of Mercatus. The Divestment is expected to be completed on 31 March 2023.
The Divestment is a result of the strategic review undertaken by Mercatus. In line with the outcome of the strategic review, Mercatus will continue to retain ownership of assets that are substantially used by NTUC, NTUC Enterprise and its portfolio of social enterprises. Assets that are considered non-core, such as Jurong Point and Swing By @ Thomson Plaza are thus divested.
Mr Seah Kian Peng, Deputy Chairman of Mercatus and Group Chief Executive Officer of NTUC Enterprise commented, “NTUC Enterprise owns a diverse portfolio of assets across the areas of food, health, education, financial services and real estate. Mercatus’ strategic review is one example of how we continually reshape our portfolio to deliver greater social impact and generate long-term sustainable returns. The divestment will allow us to unlock some value and redeploy capital to specific areas where we can make a difference in the lives of families in Singapore in a more direct and meaningful way, such as by scaling services in healthcare and education. We appreciate Link Asset Management Limited's willingness to retain talent and will work together with the Singapore Industrial and Services Employees' Union to support Mercatus' employees throughout this exercise.”
Separately, Mercatus has also entered into a long-term partnership with Link REIT for the asset and property management of AMK Hub.
About the divested portfolio
Prominently situated in the western region of Singapore, Jurong Point which has a net lettable area of 720,000 square feet is easily accessible via Boon Lay MRT station and Boon Lay bus interchange. Shoppers are spoilt for choice with thematic shopping precincts, such as Japanese and Hong Kong streets and about 370 tenants offering a wide variety of merchandise, services and F&B offerings. To boost the retail destination’s appeal, Jurong Point underwent asset enhancement initiatives which were completed in early 2022. The mall continues to draw shoppers with key tenants such as FairPrice Xtra (24 hr), Kopitiam, Daiso, Don Don Donki, Haidilao and many more.
Swing By @ Thomson Plaza
Having been relaunched as a multi-concept enclave within Thomson Plaza, Swing By @ Thomson Plaza which has a net lettable area of 110,000 square feet occupies Level 1 and Level 3 of the mall. The opening of the Upper Thomson MRT station in August 2021 connects shoppers directly to Thomson Plaza’s doorsteps, further boosting the accessibility of the mall. The enclave is home to almost 60 tenants, with a variety of F&B offerings, such as Huggs Collective, Patisserie G, Tai Chong Kok and Wonderful Bapsang.