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Hong Kong-listed Shun Tak Holdings has made its first significant commercial investment in Singapore, with the $350 million acquisition of a 70 percent stake in TripleOne Somerset (pictured) from a consortium led by Perennial Real Estate Holdings, reported the Straits Times.
While Perennial will receive around $101 million for its 20.2 percent interest, it will retain a 30 percent stake in TripleOne.
It noted that the retention of the 30 percent stake will provide it with income stability, as well as the opportunity to benefit from the enhancement works and strata sales.
Perennial expects to post a pre-tax gain of around $34.3 million from the divestment, which the company will use to finance existing or future investments, it said in an SGX filing.
Meanwhile, three companies are fully divesting their stakes in TripleOne. BreadTalk Group and Bousted Projects are selling their 5.3 percent and 5.5 percent stake for around $26.5 million and S$27.5 million respectively, while SingHaiyi Group is divesting its 20 percent interest for around $100 million.
Shun Fung Holdings, ROOI Holdings and Grandma’s Holdings, which are entities held by Ronald Ooi and the family office of Gloria Lee, are selling a 10 percent stake, while Unified Elite, a company connected to Shun Tak, is divesting its nine percent interest to Shun Tak.
“Shun Tak’s investment in TripleOne Somerset is a strong testament of their confidence in the Singapore market and the long term value which can be created at the integrated development from the strata sale of the office space and medical suites and repositioning of the retail podium,” said Perennial’s CEO, Pua Seck Guan.
TripleOne Somerset is currently undergoing a $120 million asset enhancement programme. Set to be completed in late-2018/early-2019, the extensive works include incorporating medical suites of about 32,000 sq ft, enhancing the retail offerings, and sprucing up the office lobby and common areas.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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