IOI Properties receives proposal from CEO to jointly develop Shenton House in Singapore
According to IOIPG, Yeow Seng has recommended the purchase factor be established based on the actual price of assets acquired by himself and Shenton 101, multiplied by the equity interest in Shenton 101 to be obtained by IOIPG, or an equivalent subscription price for the membership of new shares in Shenton 101.
“The good faith purpose of Yeow Seng is not to make a private gain emerging from the proposal. Thus, the consideration is to involve the first expense of investment of equity in Shenton 101 and the expense accumulated by Shenton 101 for the purchase of Shenton House and any type of advance fees had by Shenton 101 like specialists’ payments and expenditures and tender, application and authorization costs as well as cost of finance,” IOIPG added.
According to a stock exchange filing, Yeow Seng has proposed that IOIPG acquire entirety or section of his exclusive vehicle, Shenton 101 Pte Ltd, which is planning to redevelop Shenton House, works for which are set up to start by the end of 2025.
Yeow Seng and his sibling Datuk Lee Yeow Chor are significant investors of IOIPG through their significant shareholdings in Vertical Capacity Sdn Bhd, which takes 65.67% in IOIPG.
This is to deal with and reduce the prospective problem of attention that will emerge because of his role in the redevelopment of Shenton House via Shenton 101, through which he is the single investor. The purpose of the plan is to coordinate the interests of IOIPG thereupon of Shenton 101, that will maintain the redeveloped real estate as property investment upon its successful redevelopment.
“Further, according to the Singapore’s main business district incentive program, Shenton House is qualified for a 25% reward gross floor space which can be redeveloped right into a mixed-use commercial with non commercial development or a hotel at the GPR of 14. As such, Shenton House is earmarked for redevelopment into a fresh 99-year leasehold commercial improvement,” IOIPG claimed.
KUALA LUMPUR (June 25): IOI Properties Group Bhd (KL: IOIPG) has actually received a recommendation from its group president cum major shareholder Lee Yeow Seng to join the development of Shenton House, a business property located in Singapore that his private vehicle has actually effectively tendered for, for S$ 538 million (RM1.9 billion).
IOIPG claimed the proposal is valid for four months, and that might be lengthened by an additional 2 months if a written application is obtained from IOIPG.
“Yeow Seng has actually emphasised to IOIPG that Shenton 101 is ready and able to move on with the property development planning of Shenton House under the conditions of the tender and that Shenton 101 is well on the way to established funding to allow it to proceed with the redevelopment and also the reason that Yeow Seng is expanding the contract to IOIPG is to aid resolve or deal with the probable conflict of interest situation,” IOIPG’s filing read.
The current additional present resources obligation– excluding the development cost, which is to be finalised– is S$ 476 million, which includes land betterment fee, rent top-up costs, and operation expenses, it stated.
Shenton 101 was the single bidder of Shenton House, which lies in Singapore’s central business district. Yeow Seng previously stated he felt it was better to bid for Shenton House by means of his exclusive vehicle due to the dimension of the subject and the limited timing established by the sales committee on the collective sale.
Shenton House covers 3,377 square metres and is marked for retail use with a gross plot ratio (GPR) of 11.2. The premises has a 44-year land contract, with the possible to be stretched to a fresh 99-year lease.
At market close on Tuesday, IOI Properties’ shares lost 4 sen or 1.75% to RM2.25, bringing the company a value of RM12.39 billion.
