Results 1 to 2 of 2

Thread: Tuan Sing Holdings buys Sime Darby Centre for $365m

  1. #1
    Join Date
    Oct 2011
    Posts
    10,829

    Default Tuan Sing Holdings buys Sime Darby Centre for $365m

    Tuan Sing Holdings buys Sime Darby Centre for $365m

    Apr 11, 2017

    Jacqueline Woo


    Developer Tuan Sing Holdings is buying Sime Darby Centre in Bukit Timah for $365 million.

    The property at 896 Dunearn Road sits on a commercial site of 140,886 sq ft that is part freehold and part 999-year leasehold, with an allowable gross plot ratio of 1.8 and a maximum permissible gross floor area of 253,595 sq ft. It is 96 per cent occupied over a net lettable area of around 202,712 sq ft, with tenants such as kitchenware retailer ToTT, Scanteak, Cold Storage and ChildFirst pre-school.

    New York-based private equity giant Blackstone Group had bought a 70 per cent stake in Sime Darby Centre for just under $200 million last year from Malaysian palm oil producer Sime Darby Berhad, according to media reports.

    Tuan Sing's purchase would mean Blackstone has racked up a 25 per cent gain on its investment.

    Tuan Sing, which told the Singapore Exchange yesterday it expects to complete the deal in about 10 weeks, plans to "reposition the property into a hub of activities".

    The firm believes "there is a significant potential for commercial activities that can serve the needs of the vast residential community in the vicinity... (it) is confident that the asset shall be an excellent investment that will generate long-term revenue and profit".

    Group chief financial officer Chong Chou Yuen told The Straits Times that Tuan Sing will "undertake a review of the current tenancy mix and introduce some new and exciting food and beverage brands and restaurants, medical facilities as well as enrichment and education centres". He said there will also be a significant office component that will add to the diversity of the tenancy mix, and the firm will also look into making full use of the link between the property and King Albert Park MRT station.

    The purchase, to be financed by internal and external resources, will be carried out by Tuan Sing's wholly owned unit Gerbera Land. Tuan Sing said the deal is not expected to have any material impact on the net tangible assets or earnings per share of the group for the current fiscal year ending Dec 31. Tuan Sing shares closed up half a cent or 1.5 per cent at 34 cents yesterday, after the deal was announced.

  2. #2
    Join Date
    Oct 2011
    Posts
    10,829

    Default Tuan Sing paying S$365m for Sime Darby Centre

    Tuan Sing paying S$365m for Sime Darby Centre

    It trumps contenders with its S$1,800 psf bid

    Tuesday, April 11, 2017

    by Lynette Khoo
    [email protected]
    @LynetteKhooBT


    PROPERTY developer Tuan Sing Holdings is acquiring Sime Darby Centre in Bukit Timah for S$365 million from US private equity Blackstone Group and Malaysian palm oil producer Sime Darby Bhd, which translates to about S$1,800 per square foot (psf) on net lettable area.

    The property was said to be hotly contested by more than 10 bidders.

    Blackstone Group had bought a 70 per cent stake in Sime Darby Centre for just under S$200 million last year from Malaysian palm oil producer Sime Darby Bhd, among three of Sime Darby's properties that it bought into.

    When contacted, Tuan Sing Holdings chief financial officer Chong Chou Yuen said that plans for the building have not been finalised yet, but the group intends to reposition the mixed-use property into one that will be "much more busy than currently".

    The property's net lettable area of 18,832 sq m (202,712 sq ft) is about 96 per cent occupied, of which about 80 per cent is office space and the rest retail.

    It sits on a part-freehold and part-999 years leasehold commercial land spanning 13,088.8 sq m (140,886 sq ft) with an allowable gross plot ratio of 1.8 or a maximum permissible gross floor area of 23,559.8 sq m (253,595 sq ft).

    Located along Dunearn Road and directly in front of King Albert Park MRT station, Sime Darby Centre houses tenants such as kitchenware retailer ToTT, Scanteak, Cold Storage, ChildFirst pre-school and Indian restaurant Karu's Indian Banana Leaf Restaurant.

    "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," Tuan Sing said in a regulatory filing on Monday.

    "Therefore, the company is confident that the asset shall be an excellent investment that will generate long- term revenue and profit to the company," it added.

    The transaction is expected to be completed within 10 weeks from the date of agreement on April 7. It will be financed by internal and external resources and is not expected to have any material impact on the net tangible assets or earnings per share of the group for the current financial year ending Dec 31, 2017.

    In beefing up its recurring income portfolio, Tuan Sing is redeveloping Robinson Towers, which is expected to have 18,058 sq m of lettable area for office, retail and F&B when it is completed by end-2018. The group has fully leased out 12,479 sq m of office space in Robinson Point, which it acquired in late 2013; it also owns the 11th floor of Far East Finance Building and a commercial property in Shanghai.

    In addition, Tuan Sing owns a few industrial properties in Singapore, Malaysia and China, as well as two hotels in Australia. In Perth, it has an office block with 23,415 sq m of lettable area next to Hyatt Regency, a hotel that it owns.

    As part of Sime Darby's plan to pare down debt through asset divestments in Australia and Singapore, it sold a majority stake in three Singapore properties to Blackstone last May in a deal that valued them at about S$300 million.

    Besides Sime Darby Centre, the other two properties are Sime Darby Enterprise Centre, which is a light industrial building along Jalan Kilang off Jalan Bukit Merah, and Sime Darby Business Centre at 315 Alexandra Road next to Ikea.

Similar Threads

  1. Mont Botanik Residence by Tuan Sing Holdings
    By SGPropertySales in forum Marketplace
    Replies: 0
    -: 09-08-18, 00:52
  2. Kandis Residence by Tuan Sing Holdings Limited
    By bryangbk in forum Far North
    Replies: 6
    -: 26-06-18, 12:32
  3. Replies: 834
    -: 01-10-16, 06:40
  4. Tuan Sing Holdings sees encouraging take-up for Cluny Park Residence
    By princess_morbucks in forum Singapore Private Condominium Property Discussion and News
    Replies: 15
    -: 22-04-14, 17:20
  5. Tuan Sing buys Serene House for $99.1m
    By mr funny in forum En Bloc Achieved
    Replies: 4
    -: 21-12-10, 16:37

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •