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Singapore-based Tuan Sing Holdings has committed to purchase Sime Darby Centre (pictured) in Bukit Timah for $365 million in cash, said an SGX filing on Monday (10 April).
In line with this, its wholly-owned subsidiary Gerbera Land entered into a purchase agreement with Sime Darby Property (Dunearn) last Friday (7 April).
The property sits on a part freehold and part 999-year leasehold commercial site measuring 140,886 sq ft. It has an allowable gross plot ratio of 1.8, meaning it has a maximum permissible gross floor area of 253,595 sq ft. Around 96 percent of its net lettable area of approximately 202,712 sq ft is currently occupied.
Funded by internal and external resources, the transaction is expected to be completed within ten weeks from 7 April. It is not expected to have any material impact on the net tangible assets or earnings per share of Tuan Sing Group for the current financial year ending 31 December 2017.
Moreover, Tuan Sing Holdings revealed that it plans to reposition Sime Darby Centre as a hub for activities.
“The company believes that there is a significant potential for commercial activities that can serve the needs of the vast residential community in the vicinity. Therefore, the company is confident that the asset shall be an excellent investment that will generate long term revenue and profit.”
TODAYonline reported that Malaysia’s Sime Darby owns 30 percent of the property, while US private equity firm Blackstone Group controls the remaining 70 percent.
Media reports stated that Blackstone acquired its stake from the Malaysian conglomerate for less than $200 million in 2016.
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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