Aspial Corporation has awarded a contract to Woh Hup to build City Gate, a 30-storey mixed development at the junction of Beach Road and Jalan Sultan.
Aspial, which also has businesses in jewellery and in financial services, said yesterday that 99 per cent of City Gate's residential units and 57 per cent of its commercial units have already been sold.
Revenue from these transactions amounts to about $625 million and is expected to be progressively recognised from the 2016 to the 2019 financial year.
Total sales for the entire project is estimated to be $805 million.
Construction is expected to commence next month and be completed in January 2019.
Aspial chief executive Koh Wee Seng said in a statement yesterday: "Given the amount of sales locked in for City Gate and the potential sales arising from the remaining units, we expect to see a significant cash inflow upon the completion of this project... which will go towards reducing gearing, thereby further strengthening our balance sheet."
Cambridge Industrial Trust
Cambridge Industrial Trust (CIT) will divest its remaining leasehold interest in a four-storey industrial building in Tuas for $16.5 million to an existing tenant, Reliance Products.
The sale price represents a premium of about 5 per cent above the asset's book value of $15.7 million and close to double the original purchase price of $8.55 million in 2006, said the trust's manager in an announcement yesterday.
It said the building at 23, Tuas Avenue 10 was a non-core asset.
Sale proceeds will be used to repay debt and fund refurbishments and acquisitions, said the trust manager.
Mr Philip Levinson, chief executive of the trust's manager, said: "This divestment is consistent with CIT's strategy, focused on recycling capital for greater investment flexibility and better returns."
iFast Corporation is subscribing to 21.5 per cent of the enlarged share capital of Pecuniam.
Pecumiam has a 74.72 per cent indirect stake in a company that distributes investment products in India.