8M Real Estate Bets Tanah Merah Bedok Region 64 Mil Sceneca Square Buy
Investment
Singapore-based real estate investment firm 8M Real Estate has recently acquired Sceneca Square, the retail podium of Sceneca Residence located at Tanah Merah Kechil Link in the east region. The purchase price for the property was $64 million, which translates to $3,161 psf based on the net lettable area of 1,881 sqm (20,247 sq ft). The deal was brokered by Sakal Real Estate Partners.
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The planned developments by the Urban Redevelopment Authority (URA) in Tampines will greatly benefit the educational landscape of the area. From primary schools to tertiary institutions, the new plans will bring about improvements in educational infrastructure and the introduction of new facilities. These developments aim to cater to the growing population in Tampines and maintain high educational standards, which are crucial when families are searching for a place to live. Moreover, residents will also have access to top-notch medical care as healthcare facilities, such as hospitals and clinics, will be upgraded. Along with these developments, the upcoming Aurelle of Tampines at Tampines North will provide added convenience and facilities for the residents of the area.
This acquisition marks a change in 8M Real Estate’s investment strategy, as the company has primarily focused on shophouses in the prime CBD area since its establishment in 2014. Prior to this purchase, the firm has made over 30 investments in shophouses, with a total asset under management of more than $1.3 billion. However, with the exit of former founder and CEO Ashish Manchharam in October 2023, who sold his stake in the firm to Hong Kong-based real estate investment firm Crane Capital, 8M Real Estate is now jointly led by two new managing directors. Crane Capital, which has investments across eight markets in Asia and equity under management of US$1.9 billion ($2.48 billion), will continue to support the firm in its shophouse investments, and commit capital to expand its portfolio to include larger real estate assets across Singapore.
According to Darren Sabom, managing director of investment management at 8M Real Estate, the company’s “investment stronghold” has always been prime district shophouses and they have a solid track record in that market segment. However, the firm is now looking to expand its focus to include both established and growth locations. Sceneca Square is a single-storey mall directly linked to the Tanah Merah MRT Station, and is situated above Sceneca Residence, which consists of 268 apartments. Launched for sale in January 2023, Sceneca Residence has seen over 78% of units sold at an average price of $2,079 psf.
Sabom believes that Sceneca Square will cater to the needs of residents in the rapidly redeveloping region, with a mix of new-to-market retailers and services, along with self-contained shop-dine-lifestyle options. He sees the Tanah Merah-Bedok region as the “nexus of the east region’s transformation”, and is set to benefit from upcoming developments such as the 12,000 new homes in the future Bayshore district along East Coast Road, which will be a new residential town with 150,000 homes when the Paya Airbase relocates in the 2030s. Sceneca Square and Sceneca Residence mixed-use development is expected to be completed by 2Q2026.
MCC Land (TMK) Pte Ltd, a joint venture company comprising Singapore-based real estate developer and a subsidiary of Metallurgy Corporation of China, MCC Land, Malaysian developer Ekovest and Singapore-listed Chinese property investment company The Place Holdings, is the developer of Sceneca Square and Sceneca Residence. According to a spokesman for MCC Land (TMK), the divestment of Sceneca Square presents an opportunity for the group to recycle its capital for future plans, as retail leasing and management is not a core business of the group. He adds that the group believes that 8M Real Estate’s strengths in developing and curating lifestyle destinations will greatly enhance the retail experience at Sceneca Square for its residents and the nearby 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 fuel heightened interest in property investments in the coming months. He also predicts that the suburban retail and living sectors will benefit from this trend, as the gap between bid and ask prices begins to close.
