IOI Properties receives proposal from CEO to jointly develop Shenton House in Singapore
The current additional existing capital obligation– excluding the property development cost, that is to be finalised– is S$ 476 million, which includes land enhancement rates, lease top-up premium, and transaction expenses, it claimed.
According to a stock market filing, Yeow Seng has proposed that IOIPG acquire all or section of his exclusive vehicle, Shenton 101 Pte Ltd, which is preparing to redevelop Shenton House, works for which are arranged to start at the end of 2025.
Yeow Seng and his sibling Datuk Lee Yeow Chor are significant shareholders of IOIPG through their considerable shareholdings in Vertical Capacity Sdn Bhd, that takes 65.67% in IOIPG.
KUALA LUMPUR (June 25): IOI Properties Group Bhd (KL: IOIPG) has received a recommendation from its group president cum major shareholder Lee Yeow Seng to participate in the development of Shenton House, a business property situated in Singapore that his private vehicle has actually effectively tendered for, for S$ 538 million (RM1.9 billion).
“The good faith intention of Yeow Seng is not to make a private gain developing from the proposal. Therefore, the factor to consider is to feature the initial price of investment of equity in Shenton 101 and the price accumulated by Shenton 101 for the procurement of Shenton House and any kind of upfront fees incurred by Shenton 101 including professionals’ rates and expenses and tender, application and authorization costs in addition to cost of finance,” IOIPG added.
At market close on Tuesday, IOI Properties’ shares lost 4 sen or 1.75% to RM2.25, bringing the company a worth of RM12.39 billion.
“Further, according to the Singapore’s major business district reward system, Shenton House is eligible for a 25% reward gross floor area which can be redeveloped into a mixed-use commercial with residential project or a hotel at the GPR of 14. Because of this, Shenton House is set aside for redevelopment into a fresh 99-year leasehold business improvement,” IOIPG stated.
IOIPG said the plan is valid for 4 months, and that might be extended by one more 2 months if a written request is obtained from IOIPG.
Shenton House covers 3,377 square metres and is marked for commercial use with a gross plot ratio (GPR) of 11.2. The property has a 44-year land contract, with the possible to be extended to a fresh 99-year lease.
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Shenton 101 was the single prospective buyer of Shenton House, that lies in Singapore’s main business section. Yeow Seng previously said he felt it was better suited to bid for Shenton House through his own vehicle due to the dimension of the subject and the tight time established by the sales board on the collective sale.
This is to deal with and minimize the prospective conflict of interest that are going to arise as a result of his part in the redevelopment of Shenton House via Shenton 101, through which he is the single investor. The intent of the proposition is to line up the involvements of IOIPG with that of Shenton 101, that will keep the redeveloped real property as property investment upon its successful redevelopment.
According to IOIPG, Yeow Seng has actually suggested the acquisition factor be figured out based upon the real expense of investment incurred by himself and Shenton 101, multiplied by the equity interest in Shenton 101 to be obtained by IOIPG, or an equal membership price for the membership of new shares in Shenton 101.
“Yeow Seng has actually stressed to IOIPG that Shenton 101 is prepared and capable to continue with the development organizing of Shenton House under the conditions of the tender and that Shenton 101 is well on the way to put in place funding to enable it to go on with the redevelopment and that the purpose that Yeow Seng is prolonging the proposal to IOIPG is to assist deal with or resolve the possible problem of interest circumstance,” IOIPG’s declaring read.
