Strategic Moves in Australia, Singapore, and Indonesia
On Friday evening (Oct 22), Metro Holdings, a mainboard-listed property investment and development entity, unveiled a range of strategic investments in Australia, Singapore, and Indonesia to bolster its resilience.
In Australia, Metro has agreed to purchase Cherrybrook Village Shopping Centre in New South Wales in collaboration with Sim Lian Group for approximately A$132.8 million (S$133.9 million). This 29,540 square metre freehold asset, located 30 km north-west of Sydney’s CBD, boasts a net lettable area of 9,381 sq m and 441 parking spaces. With an occupancy rate of 98.4% as of September 30 and a WALE of 3.1 years, the centre is anchored by key retailers like Woolworths, Martelli’s Fruit Market, and 51 specialty shops. After this acquisition, Metro and Sim Lian will control 16 freehold properties across several Australian states, valued at around A$1.07 billion, with an average occupancy of 95.2% and a WALE of 6.5 years.
Metro also increased its stake in the Australian portfolio and Sim Lian-Metro Capital to 30% from 20%, demonstrating confidence in their joint venture. Yip Hoong Mun, the group’s CEO, described this move as a “logical step” to enhance stable income.
In Singapore, Metro has invested in 351 Braddell Road through the Boustead Industrial Fund (BIF), acquiring it for S$121 million. Metro holds a 26% stake in BIF and has also invested in 7.0% notes due in 2031 for S$17.58 million. This high-spec industrial property near Braddell MRT station features a net lettable area of 236,864 square feet, a WALE of 4.1 years, and is leased to notable tenants like NETS, Secretlab, and Electrolux. Metro’s entry into the Singapore real estate market was marked by the acquisition of 14 properties in December 2020, bringing the total to 15 with an impressive occupancy of 97.2% and a WALE of 6.4 years.
Yip noted the potential for industrial rent growth due to global manufacturing interest. Additionally, Metro has partnered with The Ascott to manage over 200 units in Trans Park Bekasi, Jakarta, where Metro holds a 90% stake. This project comprises five 32-storey towers with 5,660 units, all completed.
Metro’s shares closed at S$0.735, down 2% or S$0.015, before these announcements were made public.
