Paragon's value up by over $100m in 6 months

Paragon's value up by over $100m in 6 months

Upscale Paragon Mall - one of two malls to be spun off into a new Singapore Press Holdings (SPH) Reit - jumped in value by over $100 million in six months.

The mall, at 290 Orchard Road, was valued at about $2.4 billion in August last year.

But the most recent independent valuation by consultancy Knight Frank found that it was worth $2.61 billion on a freehold basis as of Feb 28 this year.

The freehold mall is being injected into the real estate investment trust (reit) on a 99-year leasehold basis, beginning from the reit's listing date.

On that 99-year leasehold basis, it was worth $2.502 billion as of Feb 28, Knight Frank said.

SPH chief executive Alan Chan told a briefing on Monday that this approach was in line with market practice, noting that The Clementi Mall is on a 99-year lease.

The media group on Monday announced that Paragon and The Clementi Mall will be spun off into the reit. SPH fully owns Paragon and owns 60 per cent of The Clementi Mall. It also owns 70 per cent of The Seletar Mall.

Mr Chan said The Seletar Mall will also be sold to the reit when it is ready.

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