HK's Shun Tak Holdings buys 70% stake in TripleOne Somerset for $350m from Perennial-led consortium

TripleOne Somerset.
TripleOne Somerset.PHOTO: THE BUSINESS TIMES

SINGAPORE - Hong Kong-listed Shun Tak Holdings has bought a 70-per cent stake in TripleOne Somerset for S$350 million from a consortium, led by Perennial Real Estate Holdings.

TripleOne is Shun Tak's first significant commercial investment in Singapore.

Perennial, which will receive about S$101 million for a 20.2 per cent interest, will retain a 30 per cent share in the Orchard Road office and retail development.

Perennial said the retention of the 30-per cent stake in TripleOne will provide it with income stability and the opportunity to enjoy the upside from the strata sales and enhancement works.

The company expects to register a pre-tax gain of approximately S$34.3 million from its divestment, it said in a filing with the Singapore Exchange on Thursday (Jan 26). It will use its share of the proceeds to fund existing or future investments, Perennial added.

Three companies are fully exiting from their stakes in TripleOne. SingHaiyi Group is selling its 20 per cent stake for about S$100 million, Boustead Projects is divesting its 5.5 per cent holding for about S$27.5 million while the BreadTalk Group is selling its 5.3 per cent interest for S$26.5 million.

An aggregate 10-per cent stake will be sold by Shun Fung Holdings (Pte) Ltd, ROOI Holdings Pte Ltd and Grandma's Holdings Ltd, which are entities held by Mr Ronald Ooi and the family office of Mrs Gloria Lee.

Unified Elite Ltd, a company connected to Shun Tak, has entered into a separate agreement to fully divest its 9 per cent stake to to Shun Tak.

Perennial in December 2013 syndicated a consortium of investors to acquire TripleOne at a property price of S$970 million.

Shun Tak is Perennial's existing partner for the Beijing Tongzhou Integrated Development and Zhuhai Hengqin Integrated Development in China.

Said Perennial CEO Pua Seck Guan: Shun Tak's investment in TripleOne Somerset is a strong testament of their confidence in the Singapore market and the long term value which can be created at the integrated development from the strata sale of the office space and medical suites and repositioning of the retail podium.

A S$120 million enhancement programme is currently underway at the TripleOne to to augment the retail offerings, incorporate medical suites of about 32,000 sq ft and to spruce up the office lobby and common areas. The works are expected to be completed in late 2018/early 2019.