LC Development, a property developer focused primarily on the hospitality sector, has revealed its plan to invest S$34.1 million and effectively gain a 44 percent stake in leading real estate consultancy firm Knight Frank Singapore.
The SGX-listed LC Development will acquire an 80 percent stake in Cheong Hock Chye & Co (CHC) through seven investors, including Group Managing Director Danny Yeo and Knight Frank Chairman Tan Tiong Cheng.
CHC holds a 55 percent interest in Knight Frank, giving LC Development a 44 percent stake in the consultancy firm. LC Development has the option to buy CHC’s remaining 20 percent, thereby increasing its stake to 55 percent.
According to LC Development, the investment has added a profitable and reputable company to its investment portfolio.
“This will potentially expand the earnings base of LC Dev and enhance its shareholders’ value,” said LC Development.
Just like the key management and staff of the consultancy firm, LC Development aims to continue its day-to-day operations without any change in corporate strategy or direction, said Kelvin Lum, Managing Director at LC Development.
“Our intention is to be a long-term investor in Knight Frank Singapore,” he said.
“It is business as usual, with no impact on Knight Frank Singapore’s relationship with clients and business partners,” he added.
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