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Singapore-based private equity group Lucrum Capital plans to inject at least S$200 million in investments into TT International’s (TTI) Big Box project, a move that could revive the long-stalled retail-cum-warehouse development in Jurong East.
According to The Business Times, Lucrum Capital, through its wholly-owned unit, Lucrum Development (LD), signed a “heads of agreement” with TTI to jointly develop the Big Box project.
Under the agreement, TTI’s shares in the project will be transferred to its unit Big Box Pte Ltd and LD will be given the option to obtain up to 49 percent interest in the special purpose vehicle, while TTI will own the remaining shares.
The report noted that this will be Lucrum’s largest investment, with the S$200 million capital injection coming from the Lucrum Opportunistic Fund, a closed-end Singapore fund valued at around S$250 million.
Meanwhile, construction works for the Big Box project are expected to be completed by the end of next year, and it will become the last warehouse retail project under the government’s Warehouse Retail Scheme (WRS), following the success of Courts, Giant and Ikea in the eastern part of the country.
With a total gross floor area (GFA) of around 1.3 million sq ft, the development comprises an eight-storey tower which will house retail features such as a hypermarket, furniture shop and consumer electronic products. It is expected to create at least 500 jobs and will cater to two million people in the Jurong Gateway area.
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