SPH REIT has entered into a sale and purchase agreement to acquire a retail strip with a 99-year leasehold for SGD63.2 million (USD47 million).

The strip, which is known as The Rail Mall, has a lease that commenced in March 1947.

SPH REIT will acquire the property from Pulau Properties, a company run by the Lee Foundation, and members of the Lee family with significant stakes OCBC Bank.

Pulau Properties has been looking for a buyer for The Rail Mall since January 2018.

Independent valuer Edmund Tie & Company has valued the property at SGD62.9 million.

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By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.