The affiliates of Mercatus Co-Operative, a unit of NTUC Enterprise Co-operative, have entered into a sale purchase agreement with a variety of affiliates from Link REIT to divest Mercatus 100% stake of Jurong Point as well as Swing By at Thomson Plaza for $2.16 billion.
The divestment is an outcome of a strategic analysis conducted by Mercatus is scheduled to be completed by March 31st 2023.
Mercatus will remain in the ownership of assets significant for NTUC, NTUC Enterprise and its social enterprises portfolio. Jurong Point, and Swing By @ Thomson Plaza will be sold as they are considered to be non-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 all employees affected by Mercatus.
Mercatus Vice Chairman Seah Kian Peng and group CEO of NTUC Enterprise says the divestment lets the company make some money and to redeploy capital in 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 talent in the company and will partner along with Singapore’s Industrial and Service Employees’ Union in assisting Mercatus employees during this process,” he adds.
In connection with the acquisition, Link will also enter into an property and asset property management agreement that will be at the market-standard price to AMK Hub, which will remain under Mercatus the ownership of Mercatus. Link will pay for the acquisition using its cash reserves and loans.