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Singapore-based real estate investment firm 8M Real Estate has recently acquired Sceneca Square, the retail podium of Sceneca Residence at Tanah Merah Kechil Link in the eastern region. The purchase price of the acquisition 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.
This acquisition marks a change in investment strategy for 8M Real Estate, which has primarily focused on investing in shophouses in the prime CBD area since its inception in 2014. Under former founder and CEO Ashish Manchharam, 8M had invested in over 30 shophouses across 72 shop lots, with assets under management of more than $1.3 billion. However, Manchharam exited the company in October 2023, having sold his stake to Hong Kong-based real estate investment firm Crane Capital. Crane Capital has investments across eight markets in Asia, with equity under management of US$1.9 billion ($2.48 billion). The firm is led by managing partner and CEO Wai Tang.
Currently, 8M Real Estate is jointly led by managing director, investment management Darren Sabom, who joined the firm in 2020, and managing director, finance Viola Chee, who has been with the company since 2018. According to Sabom, Crane Capital and its investors, a US-based pension fund, will continue to support 8M Real Estate in its shophouse investments and will allocate capital for expanding its portfolio to include larger real estate assets across Singapore.
Sceneca Square is the first purchase by 8M Real Estate since Manchharam’s exit. The retail podium sits on top of Sceneca Residence, a mixed-use development comprising 268 apartments across two residential blocks, with an average price of $2,079 psf. Currently, the development is over 78% sold, with 20,247 sq ft of retail space that will cater to the needs of residents in the rapidly redeveloping region. Sabom believes that the Tanah Merah-Bedok region is the nexus of the east region’s transformation and is poised to benefit from upcoming developments, such as the 12,000 new homes in the future Bayshore district along East Coast Road and a new residential town with 150,000 homes when the Paya Airbase relocates in the 2030s.
The mixed-use development, scheduled for completion in 2Q2026, is being developed by MCC Land (TMK) Pte Ltd, a joint venture between Singapore-based real estate developer and a subsidiary of Metallurgy Corporation of China, MCC Land, the majority stakeholder, Malaysian developer Ekovest, and Singapore-listed Chinese property investment company The Place Holdings.
A spokesperson for MCC Land (TMK) says that retail leasing and management are not core businesses and that the divestment of Sceneca Square presents an opportunity to recycle capital for future plans. He adds that they believe that 8M Real Estate’s proven strengths in developing and curating lifestyle destinations will greatly enhance the retail experience at Sceneca Square for its immediate residents and surrounding community.
Steven Ming, founder and managing director of Sakal Real Estate Partners, who brokered the sale of Sceneca Square, believes that the easing of interest rates will fuel increased interest in property investments in the coming quarters. He also expects the suburban retail and living sectors to benefit as bid-ask price gaps start to close.
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