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First Sponsor Group Ltd divested its interest in eight non-core properties in the Netherlands for a total value of €45.5 million (S$71.53 million).
The deal came after the group acquired Delta Lloyd Vastgoed Kantoren B.V. (DLVK) and as part of the ongoing capital restructuring of the DL portfolio.
DVLK incorporated a property-trading special purpose vehicle (SPV) in the Netherlands, the NL D&P Property 10 B.V., to hold various non-core properties in the DL portfolio and to facilitate the eventual divestment of said non-core properties.
NL D&P Property 10 B.V. then entered into a sale and purchase agreement with Union Street Pluto B.V. and Union Street Zulu B.V. to sell the non-core properties.
The disposal will enable First Sponsor to “realise cash proceeds from the sale of the said non-core properties, which will be used for the partial repayment of loan financing” extended to NL D&P Property 10 B.V. by FS Euro Capital Limited, a fully-owned subsidiary of First Sponsor.
In an SGX filing, the company noted that the properties have a carrying value of around €32.2 million (S$50.5 million).
“The group is entitled to its 33 percent attributable share of the gain on disposal of the properties sold, which is expected to be approximately €4.3 million (S$6.7 million),” it said.
The sale is set to take place on 29 February 2016.
Nikki De Guzman, Editor at CommercialGuru edited this story. To contact her about this or other stories emailnikki@propertyguru.com.sg
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