Tuan Sing which bought Katong Mall enbloc for $219m in July 2008 has sold it to Perennial Katong Retail Trust for $247.55m in November 2009.
Mr Pua Seck Guan, former executive of CapitaLand, set up the private trust. The investors are no more than six parties, including corporate and institutional investors and Mr Pua.
The seven-storey centre, in a fairly affluent neighbourhood at the junction of East Coast and Joo Chiat roads, will undergo a $55 million revamp lasting 12 to 15 months.
This will transform it into a lifestyle and food and beverage hub, said Mr Pua, who was chief executive of CapitaLand Retail before stepping down a year ago.
'After pumping in the upgrading cost, the returns can be attractive,' he said, adding that the expected net property yield after completion will be about 6 per cent to 8 per cent.
Its gross floor area will be relatively unchanged at 282,000 sq ft after redevelopment works.
But its net lettable area will rise from 172,170 sq ft to over 206,000 sq ft, said a statement from Perennial Real Estate.
But its net lettable area will rise from 172,170 sq ft to over 206,000 sq ft, said a statement from Perennial Real Estate.
The revamp will add 99 more carpark spaces to make a total of 278. These will be on basements two and three. About 30,000 sq ft of retail space on basement two will then be relocated to more prime areas on the upper floors as well as a newly created fifth floor - now the rooftop.
A cinema will occupy the top floor, while anchor tenants will include a food court and gourmet supermarket, said the statement. The mall is likely to close around the middle of next year for renovation works.
