8M Real Estate Bets Tanah Merah Bedok Region 64 Mil Sceneca Square Buy
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as partnerPlease rewrite the article below:SINGAPORE-BASED real estate firm 8M Real Estate has recently acquired Sceneca Square, the retail podium of Sceneca Residence located at Tanah Merah Kechil Link in the east region. The deal was brokered by Sakal Real Estate Partners and the purchase price was $64 million, which translates to $3,161 per square foot based on the net lettable area of 1,881 square meters (20,247 square feet).
This acquisition marks a new direction for 8M Real Estate, which has primarily focused on investing in shophouses in the prime Central Business District (CBD) area since its establishment in 2014. Under the former founder and CEO Ashish Manchharam, the company made more than 30 shophouse investments across 72 shop lots, with a total asset value of over $1.3 billion.
However, Manchharam exited the company in October 2023 and sold his stake to his partner, Hong Kong-based real estate investment firm Crane Capital. Crane Capital has investments in eight markets in Asia and manages equity worth US$1.9 billion ($2.48 billion). The company is led by managing partner and CEO Wai Tang.
8M Real Estate is now co-led by managing director of investment management Darren Sabom, who joined the company in 2020, and managing director of finance Viola Chee, who has been with the company since 2018. According to Sabom, Crane Capital and its investor, a US-based pension fund, will continue to support 8M Real Estate in its shophouse investments and will also provide financial backing for the company to expand its portfolio to include larger real estate assets in Singapore.
Sceneca Square marks 8M Real Estate’s first acquisition since Manchharam’s departure. The company has a strong track record in investing in prime district shophouses, according to Sabom. He also adds that the company’s focus has been on both established and growing locations.
Located above Sceneca Square is Sceneca Residence, a single-storey mall directly linked to the Tanah Merah MRT Station on the East-West Line. The mixed-use development consists of two residential blocks with 268 apartments, ranging from 14 to 15 storeys. As of January 2023, the development has sold more than 78% of its units at an average price of $2,079 per square foot.
Sabom believes that Sceneca Square will cater to the needs of residents in the rapidly developing region with its unique mix of retailers and services, as well as shop-dine-lifestyle options. He also sees the Tanah Merah-Bedok region as a key hub for the transformation of the east region, benefiting from upcoming developments such as the 12,000 new homes in the future Bayshore district along East Coast Road. The Paya Airbase relocation in the 2030s will also result in a new residential town with 150,000 homes.
The Sceneca Square and Sceneca Residence mixed-use development is expected to be completed by the second quarter of 2026. It is developed by MCC Land (TMK) Pte Ltd, a joint venture between Singapore-based real estate developer MCC Land, Malaysian developer Ekovest, and Singapore-listed Chinese property investment company The Place Holdings.
MCC Land (TMK) spokesperson says that the retail leasing and management is not a core business of the company, and the sale of Sceneca Square allows them to recycle their capital for future plans. They also believe that 8M Real Estate’s expertise in developing and curating lifestyle destinations will enhance the retail experience for residents of Sceneca Residence and the surrounding community.
Steven Ming, founder and managing director of Sakal Real Estate Partners, believes that the lowering interest rates will spark renewed interest in property investments. He also foresees that the suburban retail and living sectors will benefit from narrowing bid-ask price gaps.
Latest transactions at Sceneca Residence Source: EdgeProp Buddy