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17-12-2019, 07:29 PM
Proposed Acquisition of Retail Mall in Pudong, China
The Straits Trading Company Limited announced that its subsidiary, Straits Real Estate Pte. Ltd. ("SREPL"), has through its wholly-owned subsidiary, SRE Venture 16 Pte. Ltd. ("SREV16"), entered into an arrangement with an entity owned by a fund managed by a subsidiary of ARA Asset Management Limited ("ARA") and ICBC International Investment Management Limited ("ICBCI") to form a joint venture (the "Purchaser") to acquire a retail mall in Shanghai, People’s Republic of China (the “Property”) for a total cash consideration of approximately CNY2.42 billion (approximately SGD469.5 million) via the acquisition of 100% of the shares of the project company that owns the Property.
SREV16 has committed to taking up a 37.7% stake in the issued share capital of the Purchaser, with ARA and ICBCI committing to the remainder. The Consideration will be funded by a combination of shareholder capital and bank borrowings. SREV16’s capital contribution to the Consideration will be approximately CNY441.9 million (approximately SGD85.7 million), which will be funded by internal resources.
The Property, located in the Sanlin District of Pudong, Shanghai, People’s Republic of China, has approximately 83,074 square meters of gross floor area. The neighbourhood mall is strategically located within a strong population catchment of over 400,000 residents within a three kilometre radius and is easily accessible by various transportation modes. Opened in the fourth quarter of 2018, the mall is currently 91.3% occupied and offers an opportunity for the Purchaser to upgrade the tenant profile and capitalise on positive rental reversions.
More details in https://links.sgx.com/FileOpen/Proposed%...eID=590804
The Straits Trading Company Limited announced that its subsidiary, Straits Real Estate Pte. Ltd. ("SREPL"), has through its wholly-owned subsidiary, SRE Venture 16 Pte. Ltd. ("SREV16"), entered into an arrangement with an entity owned by a fund managed by a subsidiary of ARA Asset Management Limited ("ARA") and ICBC International Investment Management Limited ("ICBCI") to form a joint venture (the "Purchaser") to acquire a retail mall in Shanghai, People’s Republic of China (the “Property”) for a total cash consideration of approximately CNY2.42 billion (approximately SGD469.5 million) via the acquisition of 100% of the shares of the project company that owns the Property.
SREV16 has committed to taking up a 37.7% stake in the issued share capital of the Purchaser, with ARA and ICBCI committing to the remainder. The Consideration will be funded by a combination of shareholder capital and bank borrowings. SREV16’s capital contribution to the Consideration will be approximately CNY441.9 million (approximately SGD85.7 million), which will be funded by internal resources.
The Property, located in the Sanlin District of Pudong, Shanghai, People’s Republic of China, has approximately 83,074 square meters of gross floor area. The neighbourhood mall is strategically located within a strong population catchment of over 400,000 residents within a three kilometre radius and is easily accessible by various transportation modes. Opened in the fourth quarter of 2018, the mall is currently 91.3% occupied and offers an opportunity for the Purchaser to upgrade the tenant profile and capitalise on positive rental reversions.
More details in https://links.sgx.com/FileOpen/Proposed%...eID=590804
Specuvestor: Asset - Business - Structure.