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A fund managed by Hong Kong-based real estate investment firm Gaw Capital Partners has agreed to acquire PoMo, a shopping mall cum office building in Selegie Road, from Enviro-Hub Holdings Ltd and BS Capital for $342 million.
This comes after Enviro-Hub Holdings’ subsidiary EH Property and Investments and BS Capital sold their respective 51 percent and 49 percent stakes in F2S1 Investment, which owns PoMo.
BS Capital is owned by Raymond Ng Ah Hua, a controlling shareholder and executive chairman of Enviro-Hub Holdings. The deal, on the other hand, is brokered by CBRE.
With a 99-year lease starting from 17 March 1983, PoMo is currently leased out to retail and office tenants.
In an SGX filing, Enviro-Hub revealed that it expects to receive a net proceeds of $335 million from the proposed disposal, “which are intended to be used mainly as funds to settle the group’s bank borrowings and general working capital of the group”.
With this, the group expects its bank borrowings to drop by 73 percent or around $300.8 million
“This would further strengthen the group’s financial position and to provide financial flexibility to the group for future potential property acquisitions should such opportunities arise,” it said.
This article was edited by Keshia Faculin.
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