IOI Properties receives proposal from CEO to jointly develop Shenton House in Singapore
According to IOIPG, Yeow Seng has actually suggested the acquisition consideration be determined based upon the actual price of assets accumulated by himself and Shenton 101, increased by the equity interest in Shenton 101 to be acquired by IOIPG, or an equivalent registration worth for the membership of brand-new shares in Shenton 101.
KUALA LUMPUR (June 25): IOI Properties Group Bhd (KL: IOIPG) has received a recommendation from its group chief executive officer cum major shareowner Lee Yeow Seng to take part in the property development of Shenton House, a commercial estate situated in Singapore that his private vehicle has effectively tendered for, for S$ 538 million (RM1.9 billion).
“Further, according to the Singapore’s main business district incentive system, Shenton House is eligible for a 25% bonus gross floor space which can be redeveloped into a mixed-use commercial with residential development or a hotel at the GPR of 14. Because of this, Shenton House is set aside for redevelopment into a fresh 99-year leasehold commercial improvement,” IOIPG said.
Yeow Seng and his sibling Datuk Lee Yeow Chor are significant shareholders of IOIPG via their significant shareholdings in Vertical Capacity Sdn Bhd, that takes 65.67% in IOIPG.
According to a bourse submission, Yeow Seng has actually suggested that IOIPG obtain entirety or portion of his private vehicle, Shenton 101 Pte Ltd, which is preparing to redevelop Shenton House, works for which are set up to begin rearmost of 2025.
“The good faith intent of Yeow Seng is not to make a personal gain developing from the proposition. As such, the factor to consider is to feature the preliminary expense of investment decision of equity in Shenton 101 and the price acquired by Shenton 101 for the procurement of Shenton House and any kind of advance costs incurred by Shenton 101 such as experts’ rates and costs and tender, application and authorization expenses in addition to price of finance,” IOIPG included.
The present added present funding commitment– excluding the property development cost, that is to be finalised– is S$ 476 million, which includes land improvement premium, lease top-up premium, and operation expenditures, it claimed.
Shenton House covers 3,377 square metres and is marked for commercial use with a gross plot ratio (GPR) of 11.2. The premises has a 44-year land contract, with the possible to be prolonged to a fresh 99-year lease.
This is to attend to and alleviate the prospective problem of attention that are going to arise due to his role in the redevelopment of Shenton House with Shenton 101, in which he is the single investor. The purpose of the proposition is to align the involvements of IOIPG with that of Shenton 101, which are going to support the redeveloped real estate as property investment upon its effective redevelopment.
IOIPG said the proposal stands for 4 months, and that may be lengthened by another 2 months if a written application is obtained from IOIPG.
Shenton 101 was the sole bidder of Shenton House, that lies in Singapore’s central business section. Yeow Seng formerly pointed out he felt it was better suited to bid for Shenton House using his private vehicle due to the dimension of the subject and the tight time established by the sales council on the collective sale.
At market close on Tuesday, IOI Properties’ shares lost four sen or 1.75% to RM2.25, bringing the company a valuation of RM12.39 billion.
“Yeow Seng has emphasised to IOIPG that Shenton 101 is ready and capable to proceed with the development preparation of Shenton House following the terms of the tender and that Shenton 101 is well on the way to implemented funding to enable it to go on with the redevelopment and that the reason that Yeow Seng is extending the proposal to IOIPG is to help solve or deal with the possible dispute of interest circumstance,” IOIPG’s filing read.
