Singapore’s Stamford Land Sells Aussie Office Bldg For S$68.6m
AUSTRALIA – A fully-owned unit of Singapore-listed Stamford Land Corporation has sold a commercial property in Perth, Australia for A$67.8 million ($68.6 million), according to an SGX filing released on Wednesday morning (30 December, SGT).
The seller is the trustee of Dynons Perth (2010) Trust, while the acquirer is Redhill Partners Investment.
Formerly known as Dynons Plaza, the divested property is now called Stamford Green. Located at 905 – 919 Hay Street in the western end of Perth’s Central Business District (CBD), it consists of a 14-storey office tower and 3 adjoining heritage properties.
The commercial property was previously leased by oil & gas giant Chevron, but it has been vacant since earlier this year.
“The office building remains vacant following the expiry of Chevron’s lease in April 2020, due to the poor leasing conditions and high vacancy in the Perth CBD area, which was further compounded by the COVID-19 pandemic in the beginning of this year,” said Stamford in its stock exchange filing.
“No valuation was carried out in connection with the divestment due to the time sensitive nature
of the transaction. However, the sale price, together with the rental income from the property for the period from the date of completion of the development to its divestment, is more than
90 percent over the initial investment outlay by the group in the land and development of the property.”
Under Rule 1006 of the Listing Manual, Stamford shared that Dynons Plaza’s net asset value compared with Stamford’s net asset value is about 16.4 percent. But net profits attributable to the disposal versus the company’s net profits is -4.7 percent. Still the aggregate value of the consideration received compared with its market capitalisation based on its overall number of issued shares (excluding treasury shares) is about 27.2 percent.
The agreement for the sale was executed on 29 December 2020. However, the contract is subject to the buyer getting approval from Australia’s Foreign Investment Review Board, among others.
“The group intends to reinvest the net sale proceeds in any opportunities that presents itself in
the future,” added Stamford Land Corporation.