The Place Holdings To Sell 11% Stake In Realty Centre Office Bldg
SINGAPORE – The Place Holdings announced that it is in discussion to dispose up to 11 percent of New Vision Holding, an entity that owns the Realty Centre site at 15 Enggor Street, reported The Business Times on Thursday evening (11 May, SGT).
The group estimates its share of the would-be proceeds from the transaction to be about S$8.8 million, which translates to 13.6 percent of New Vision Holding’s entire market cap of S$64.7 million as of Thursday’s midday trading break.
On Wednesday, The Place Holdings’ wholly-owned unit The Place Singapore Investment (TPSI) as well as Sun Card Limited (SCL) and MCC Land (Singapore) signed a binding indicative framework agreement with Maximus Global Ventures. In the deal, all four parties will ink a sale and purchase agreement by 30 June 2023.
Notably, TPSI is the largest shareholder in New Vision Holding with a 51 percent interest. It’s followed by MCC Land (30 percent) and SCL (19 percent). Also, the other two intend to divest their entire stake in the holding entity, while TPSI plans to keep a 40 percent stake in New Vision Holding.
In a separate announcement on Thursday, the group said that together with New Vision, it is in discussions with the financiers for the resolution of certain technical breaches relating to the development and construction of properties on the Realty Centre site. The financiers have not recalled the outstanding loan as at Thursday, the board said.
In a separate announcement on 11 May, the group revealed that together with New Vision, it is in talks with the financiers to resolve certain technical breaches relating to the redevelopment of the Realty Centre site. The board stated that the financiers have not recalled the outstanding loan as of Thursday.
In 2019, The Place Holdings acquired the Realty Centre office asset for S$148 million, representing a 10.3 percent discount to the commercial property’s S$165 million collective sale reserve price.
The group also disclosed that they intend to build a mixed-use development with commercial and residential components on the freehold site, with the structure also housing the firm’s headquarters.
The Realty Centre stands on a site measuring 11,000 sq ft with a 5.6 plot ratio. It is close to the existing Tanjong Pagar MRT Station and the upcoming Prince Edward Station. Apart from the site,
New Vision owns the legal and beneficial title to a nearby remnant land there.