M&G buys 4 automotive facilities in Singapore from Jardines

The Mercedes-Benz facility on Alexandra Road is the most high-profile piece of the deal

M&G Real Estate has agreed to acquire four car showrooms in Singapore from automotive distributor Jardine Cycle & Carriage (JC&C) for an undisclosed amount, according to industry sources who spoke to Mingtiandi.

Britain’s M&G on Wednesday last week signed a sale and purchase agreement with Hong Kong-based car sales unit Jardine Matheson to purchase the four properties covering a combined area of ​​889,354 sq.ft. square meters (82,623 square meters) of rental space on the urban outskirts. , according to documents seen by Mingtiandi.

Currently used as automotive showrooms, service centers, workshops and warehouses, all assets will be leased for a minimum of 10 years to the SGX-listed automotive distributor.

The deal comes as British asset manager M&G ramps up its Asia-Pacific operations this year with executive hires and a series of acquisitions in Singapore, Japan and South Korea since early 2022.

$18.3 million in annual revenue

The acquisition, which has yet to be finalized, will add four properties generating S$25.9 million ($18.3 million) in annual rental income to M&G’s portfolio in the region, with a weighted average term up to when the 12-year leases expire.

JD Lai, Director of M&G Real Estate Asia

The portfolio includes the regional headquarters of JC&C at 239/241 Alexandra Road in Bukit Merah. The four-story building spans 201,057 square feet of floor space, with the ground floor being used as a showroom for luxury and mainstream car brands such as DS Automobiles of France, Kia and Mitsubishi. Located in the middle of a residential enclave near the Redhill MRT station, the property also houses after-sales service centers for automotive brands.

The second asset is minutes away at 301 Alexandra Road, where a seven-story facility is dedicated entirely to Mercedes-Benz, offering a showroom, workshop and offices for the luxury brand, as well as parking and A coffee.

M&G’s purchase of the two Alexandra properties, which account for almost 70% of the portfolio’s rental income, comes with a 10-year leaseback term with an option to extend for another 5 years.

The area is a 10 minute walk from the Queenstown MRT station and around a 15 minute drive from the central business district.

In addition to the Alexandra assets, M&G is also acquiring property further west near Jurong Lake District. JC&C’s portfolio includes 209 Pandan Gardens, a 356,803 square foot industrial complex comprising a two-story building and a pair of four-story blocks housing showrooms, service workshops, parking lots and auxiliary offices.

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The fourth asset is 188 Pandan Loop, a two-level building with parking located a five-minute drive south of 209 Pandan Gardens. Located in an industrial area near the west coast of Singapore, the Pandan Loop facility has a leasable area of ​​132,149 square feet.

The sale-leaseback terms of Pandan’s two assets are expected to expire once their land rights end in 2038.

A spokesperson for M&G declined to comment when contacted by Mingtiandi. It is understood that CBRE brokered the transaction, but representatives from the real estate agency also declined to comment.

M&G expands its presence in Asia

M&G’s industrial deal in Singapore adds to a series of acquisitions in Asia by the asset manager this year.

Earlier this month, M&G picked up the Minato Mirai Center office building in Yokohama, Japan, in a 100 billion yen ($700 million) transaction on behalf of its M&G Asia Property Fund.

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The Yokohama transaction followed shortly after the British company committed up to $350 million in new funding to an existing business. joint venture with industrial giant ESRwith the aim of developing logistics properties in Japan with a gross value of more than $1 billion.

In September, M&G also brought on board two senior recruitments in Singapore and Seoul with the company highlighting the need to expand its Asia-Pacific team.

In a online briefing in JanuaryRichard van den Berg, fund manager of the M&G Asia Property Fund, named the industrial and residential sectors as his top picks in the region, while M&G head of research Eunice Khoo picked Australia, Japan and Singapore as its main sites for real estate investment in the region.

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