Perennial Real Estate announced today (December 4) that it has acquired the Big Box shopping mall in Jurong East for S$118 million.
This acquisition deal is expected to complete by mid-February 2021.
In a media statement, Perennial said that it has obtained JTC Corporation’s approval for the site to be redeveloped into a business park, which will likely see an investment of more than S$70 million.
The space will be renamed to Perennial Business City, which Perennial will own a majority 51 per cent stake.
The remaining 49 per cent will be held by other investors including HPRY Holdings, the investment vehicle of Kuok Khoon Hong, who is also the chairman of Perennial.
Spanning 606,600 square feet, it is expected to be completed “progressively” from the fourth quarter of next year.
Potential tenants include those from industries such as infocomm technology, biomedicial sciences, consumer goods and finance.
Perennial CEO Pua Seck Guan said the acquisition marks a “major milestone”, expanding the firm’s real estate portfolio to include business parks.
“We are pleased to have the opportunity to redevelop the asset to capitalise on the burgeoning demand for business parks, and for the new Perennial Business City to add to the vibrancy of the Jurong Lake District,” he said.
Jurong: An Emerging Business Hub
Jurong is set to be an emerging business hub in Singapore.
Earlier in March, Senior Minister of State for Trade and Industry Koh Poh Koon announced that a new co-working space will be set up in the Jurong Innovation District (JID) to help local companies innovate and develop products.
JID is currently developed as a hub for advanced manufacturing, and the district is expected to create 95,000 jobs in research and advanced manufacturing activities over the next 20 years.
Separately, the International Business Park (IBP) in Jurong has gained a foothold in the world of innovative technology.
This is particularly among businesses involved in advanced manufacturing, including suppliers and manufacturers that power the future of robotics and 3D printing.
The growing interest in IBP lies in the rejuvenation of Jurong. This comes in the form of Jurong Lake District (JLD), which has been positioned to be the largest mixed-use business district outside the city centre.
To keep pace with the evolving needs of up-and-coming businesses in Jurong, the redevelopment of iQuest@IBP is also in the works, which is slated for completion in 2022.
Featured Image Credit: Robert Ang via Shutterstock.com
