Capitol Singapore shareholders in deadlock, winding up applications filed

Perennial Real Estate Holdings has filed applications for three of its associated companies, who together own Capitol Singapore, to be wound up.
Perennial Real Estate Holdings has filed applications for three of its associated companies, who together own Capitol Singapore, to be wound up.PHOTO: ST FILE

SINGAPORE - Perennial Real Estate Holdings, through its units, has filed applications for three of its associated companies, who together own Capitol Singapore, to be wound up, it said on Thursday (Apr 14).

The developer said in a statement on Thursday (April 14) that the shareholders and management of the associated firms "are in a deadlock".

The three associated companies - Capitol Investment Holdings, Capitol Retail Management, Capitol Hotel Management - hold the assets of integrated project Capitol Singapore.

Capitol Singapore at North Bridge Road includes a retail component and a theatre.

Said Perennial: "Their relationship has been adversely affected such that the shareholders cannot realistically continue to work together constructively."

Perennial owns an effective 50 per cent stake in each of the three associated firms, and ultimately in the Capitol Project.

Chesham Properties holds the other 50 per cent in the project and those associated firms.

The shareholders have been unable to agree on some key issues about the project, and in the last few months, the project "has become increasingly deadlocked at both the board and shareholder levels".

Perennial said it is willing to buy the other 50 per cent stake from Chesham, or sell its stake to Chesham, or have all shares in the project sold to a third party.