The affiliates of Mercatus Co-Operative, a unit of NTUC Enterprise Co-operative, have entered into a sale purchase agreement with several affiliates that are part of Link REIT to divest Mercatus 100% stake of Jurong Point as well as Swing By at Thomson Plaza for $2.16 billion.
The divestment, the result of a strategic review conducted by Mercatus is expected to be completed by March 31st 2023.
Mercatus will keep the ownership of assets heavily used by NTUC, NTUC Enterprise and its social enterprises portfolio. Jurong Point, and Swing By @ Thomson Plaza are being sold off as they are not considered core.
Hong Kong listed Link REIT has been ranked as the biggest REIT in Asia that is managed through Link Asset Management Ltd (Link). As part of this divestment Link is committed to hiring the affected employees of Mercatus.
Mercatus Vice Chairman Seah Kian Peng and group CEO of NTUC Enterprise says the divestment will allow the company to gain some value and redirect capital into specific areas where it could help improve the lives of families living in Singapore for example, by enhancing the provision of healthcare and education.
“We applaud Link’s efforts to keep talented employees and will partner in conjunction with the Singapore Industry and Service Employees’ Union to help Mercatus employees throughout this process,” he adds.
In the course of the acquisition, Link will also enter into an agreement for asset management and property management agreement for the market rates in exchange for AMK Hub, which will remain under Mercatus as the owner. Link will fund the acquisition with its cash reserves and loans.