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Malaysian real estate developer Amcorp Properties Bhd (Amprop) has entered into a joint venture (JV) agreement with SRIF Pte Ltd and an endowment fund established under Nanyang Technological University to acquire a commercial property in Singapore.
Located within the Tampines Regional Centre, the property comprises two blocks of eight-storey premium Grade A office towers that is connected by a double-volume entrance lobby with F&B and retail outlets on the ground floor as well as a basement carpark.
It was built in 2009 and has a net book value of $366 million.
The 99-year leasehold property has a diverse tenant profile which include international names such as Hitachi Asia Ltd, NCR Asia Pacific Pte Ltd, Aldwych International Pte Ltd, Sysmex Asia Pacific Pte Ltd and AIA Singapore Private Limited.
In a Bursa Malaysia filing, Amprop noted that the property is well-connected with access to the Tampines Bus Interchange and Tampines MRT station. It is also near various amenities such as the Tampines Mall, Century Square and Tampines 1.
Amprop will hold a 40 percent stake in the property, while SRIF and the endowment will own 35 percent and 25 percent, respectively.
“The joint venture provides AMPROP Group with an opportunity to build its presence and investments in Singapore’s limited Grade A decentralised office market particularly in the eastern side,” it said.
It added that the JV is in line with the company’s investment strategy to “focus on properties in key developed global cities and partnership with reputable property developers for its overseas projects”.
Amprop does not expect the JV to materially affect the group’s earnings for “the current financial year ending 31 March 2020 but is expected to contribute positively in the following years”.
Fiona Ho, Digital Content Manager at PropertyGuru, edited this story. To contact her about this or other stories, email fiona@propertyguru.com.sg
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