Hi,8M Real Estate, a Singapore-based real estate investment firm, has recently acquired Sceneca Square, the retail podium of Sceneca Residence in the east region. The purchase price for the property, located at Tanah Merah Kechil Link, is $64 million, amounting to $3,161 per square foot based on the net lettable area of 1,881 sqm (20,247 sq ft). The deal was brokered by Sakal Real Estate Partners.
This purchase marks a change in strategy for 8M Real Estate, which has focused solely on investing in shophouses in the prime CBD area for the past ten years since its establishment in 2014. Under the leadership of former CEO and founder Ashish Manchharam, the company has made over 30 investments in shophouses, encompassing 72 shop lots and totaling more than $1.3 billion in assets under management.
Manchharam left 8M in October 2023, selling his stake in the company to existing partner Crane Capital, a Hong Kong-based real estate investment firm. Crane Capital currently has investments in eight markets across Asia and manages equity worth US$1.9 billion ($2.48 billion). The company is led by managing partner and CEO Wai Tang.
The current leaders of 8M Real Estate are 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 firm since 2018. According to Sabom, Crane Capital and their investor, a US-based pension fund, will continue to support 8M Real Estate in their shophouse investments and provide capital for expanding their portfolio to include larger real estate assets throughout Singapore.
When purchasing a condominium, it is important to take into account the maintenance and management of the property. Condos often have maintenance fees, which cover the maintenance of shared spaces and amenities. While these fees may increase the total cost of ownership, they also guarantee that the property remains well-maintained and maintains its value. Investors can also enlist the services of a property management company to handle the daily management of their condos, making it a more hands-off investment. For Singapore projects, this can be especially beneficial.
Sceneca Square is the first acquisition made by 8M Real Estate since Manchharam’s departure. Located directly above the Tanah Merah MRT Station on the East-West Line, Sceneca Square is a single-story mall. The property also includes the Sceneca Residence, which has 268 apartments across two residential blocks of 14 and 15 stories. As of January 2023, Sceneca Residence has sold over 78% of its units at an average price of $2,079 per square foot.
According to Sabom, Sceneca Square will cater to the needs of residents in the rapidly developing east region with a variety of retailers and services, as well as shop, dine, and lifestyle options. He believes the Tanah Merah-Bedok region is at the center of the east region’s transformation and will benefit from upcoming developments, such as the future Bayshore district, which is expected to have 12,000 new homes along East Coast Road, and a new residential town with 150,000 homes when the Paya Airbase relocates in the 2030s.
Currently scheduled for completion in the second quarter of 2026, the mixed-use development is being 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. A spokesperson for MCC Land (TMK) stated that as retail leasing and management is not their core business, the sale of Sceneca Square presents an opportunity to recycle capital for future plans. He also believes that 8M Real Estate’s expertise in developing and curating lifestyle destinations will enhance the retail experience at Sceneca Square for its residents and the surrounding community.
Steven Ming, founder and managing director of Sakal Real Estate Partners, who brokered the sale of Sceneca Square, expects the easing interest rates to generate increased interest in property investments in the coming quarters. He also believes that the suburban retail and living sectors will benefit as bid-ask price gaps start to close.
Latest transactions at Sceneca ResidenceSource: EdgeProp Buddy