Hong Kong-listed Shun Tak Holdings Limited has acquired a 70% interest in a commercial development located at 111 Somerset Road in its second acquisition in six months in Singapore.
The remaining 30% will be held by Perennial Singapore Investment Holdings Pte Ltd, a subsidiary of Perennial Real Estate Holdings Limited (PREH). PREH is a Singapore based real estate developer and the Shun Tak group’s longstanding strategic partner in both its Tongzhou and Hengqin integrated projects.
The commercial complex has a gross floor area of 766,550 square feet. It is in close proximity to Orchard Road, surrounded by a prime shopping, entertainment and tourism belt with direct MRT access.
The property is undergoing substantial redevelopment with completion expected in late 2018 or early 2019. After this it will comprise a total net strata area of 572,000 square feet, including 13 stories of strata office units, 2 stories of strata medical suites and office units and two levels of retail podium.
Total consideration of the transaction amounts to 350 million Singapore dollars (US$246.75 million). It is proposed that 61% of the equity share will be settled by cash, while another 9% currently held by the Shun Tak group’s connected person, is to be financed via the issuance of consideration shares subject to shareholders’ approval.
The joint venture will be adopting a flexible sell or hold strategy subject to prevailing market conditions.