SGX-listed SingHaiyi Group has announced that it will take a 20 percent stake, valued at S$66 million, in a consortium acquiring TripleOne Somerset for S$970 million.
This is the company’s first investment in Singapore commercial property.
SingHaiyi TripleOne (SHTPL), a wholly owned subsidiary of SingHaiyi, has inked a letter of participation with Perennial Real Estate Holdings (PREH) to participate as the consortium’s second biggest shareholder.
Notably, PREH is leading the TripleOne Somerset acquisition from Gorgeous International Limited.
With a total gross floor area of around 766,550, the 17-storey property comprises two office towers with two floors of retail space and is located adjacent to the Somerset MRT Station in the prime Orchard Road shopping precinct.
SHTPL’s participation in the project – through a combination of redeemable and nonconvertible junior bonds, ordinary shares and preference shares in Perennial Somerset Investors – will be financed by SingHaiyi’s internal resources or by other sources as deemed appropriate by the Board from time to time.
SHTPL has already paid a deposit of S$9.7 million, while the remaining S$56.3 million will be paid upon completion of the acquisition, which is expected to take place on 31 March 2014.
The acquisition is in line with the SingHaiyi’s plan to look into various investment opportunities with recurring income. The company expects the investment to enhance shareholder value while allowing the Company to leverage on the established commercial property investment and management track record of PREH.
Meanwhile, the company will appoint a representative to be part of the Project Management Team for the Asset Enhancement Initiatives works, which aims to enhance the value of the prime retail and office development by increasing its retail offerings.
Nikki De Guzman, Junior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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