Singapore, 12 Jan 2018 – Property firm SingHaiyi Group has snagged a S$841 million en bloc tender for a property in the west through its joint-venture (JV) firm amid ongoing collective sale fever.
The property is known as Park West and located at 2-20 Jalan Lempeng, near Clementi MRT station.
It is to be acquired by Sing-Haiyi Gold, a 50-50 joint venture between wholly-owned subsidiary SingHaiyi Land and Haiyi Wealth, an entity controlled by Gordon Tang and Celine Tang, it said on Thursday.
The husband and wife duo are in turn the controlling shareholders and directors of the company through Haiyi Holdings.
The property comprises a leasehold estate of 99 years commencing on March 8, 1982, with a land area of about 58,867 square metres with a plot ratio of 2.1.
It is forecast that it can yield about 1.33 million square feet of gross floor area upon redevelopment.
Experts said the regular-shaped plot of land offers redevelopment opportunity given its strategic location. The land is near the One-North R&D Park and Singapore’s second central business district at Jurong Lake.
The JV firm intends to apply to the Singapore Land Authority for the grant of a fresh 99-year lease for the property, and to lift certain title restrictions.
The deal comes as the developer in December moved to raise some S$143 million for property investments through a rights issue.
It proposed a renounceable non-underwritten rights issue of up to about 1.44 billion new shares at S$0.10 each, to be issued on the basis of one rights share for every two existing shares to shareholders.
Majority shareholder Haiyi Holdings, which has a 56.17 per cent stake in SingHaiyi, committed to subscribe for not only its pro-rata entitlement of 806 million rights shares, but also to mop up more available rights shares.
Shares of SingHaiyi closed on Thursday at S$0.115, down 0.1 Singapore cent.