Published 16 March 2011
The Business Times
By Kalpana Rashiwala
Lend Lease and its partner Silverpeak Real Estate Partners are selling PoMo at Selegie Road for $255 million. The buyer is said to be a private equity fund. The transaction is due for completion next month.
Lend Lease controls 25 per cent of the entity that is selling the retail and office development, formerly known as Paradiz Centre.
The remaining 75 per cent is held by Silverpeak, which was launched last year as a new independent advisory business to the former Lehman Brothers Real Estate Private Equity funds.
The deal was brokered by Jones Lang LaSalle through an expression of interest exercise.
PoMo is on a site with a remaining lease of about 71 years. It has net lettable area of 182,060 sq ft and gross floor area of 234,996 sq ft. The building has four levels of retail space and six levels of offices.
Lend Lease said it will realise proceeds net of debt repayments of about A$24 million (S$30.7 million) from the sale of its 25 per cent stake in the asset.
‘Since buying PoMo in 2007, Lend Lease has used its specialist retail skills to refurbish and enhance the asset. The group’s sustainability initiatives were recognised when PoMo won the 2010 Green Mark Platinum Award from Singapore’s Building & Construction Authority,’ it said in a statement yesterday.
‘The group’s focus in Singapore is primarily on retail developments, including the major suburban shopping centre Parkway Parade and313@Somerset on Orchard Road that opened in December 2009. In addition, Lend Lease has recently broken ground on the mixed use development Jurong Gateway which has secured the Ministry of National Development as anchor tenant for the commercial tower,’ it added.
Lend Lease Group CEO and managing director Steve McCann said the divestment of PoMo is in line with the group’s strategy to recycle capital and takes advantage of the strong market for retail and office assets in Singapore.
‘In Asia, we have attractive retail and mixed-use developments which place us in a strong market position. We will continue to look at additional opportunities to use our integrated retail skills and recycle our capital,’ he added.