Company Briefs: Auric Pacific

Auric Pacific

DKSH, a company that helps other firms expand their business, yesterday said it has inked a deal to acquire the consumer goods distribution business of Auric Pacific in Singapore and Malaysia for 160 million Swiss francs (S$221 million).

Auric is an investment holding firm involved in various consumer businesses in the Republic, such as food manufacturing. It owns the Food Junction foodcourts and Delifrance cafes. The company delisted from the Singapore Exchange last year.

With this move, DKSH said it will increase its exposure to the high-margin food service business and expand its presence in the consumer goods industry in Asia.

Auric's product portfolio includes more than 150 brands, and the company serves the food service channel for hotels, restaurants and cafes. It also owns two consumer brands, SCS and Buttercup, including production.

The consumer goods distribution business of Auric generates net sales of around 185 million Swiss francs, with an operating profit of about 14 million Swiss francs.

The transaction is expected to be completed in the first half of next year.

Hwa Hong Corp

Hwa Hong Corp has taken a majority stake in an £18.5 million (S$32 million) acquisition of an office building in London, the investment holding company announced yesterday.

It took a 71.39 per cent interest in Garrett Property Holdings (GPH) for a nominal value of £71.39, with the remaining shares held by unrelated parties, including Langland Estates (UK) and Steptwice Company.

GPH in turn owns property investment firm Capital Garrett, which has signed agreements with two unrelated third parties to acquire a freehold property at 20 Garrett Street in London for £18.5 million. The acquisition was an off-market transaction and was completed yesterday. It will be funded by a combination of bank loans and internal cash sources.

The property has a total lettable floor area of about 17,500 sq ft and comprises office accommodation over three floors and a lower ground floor. It is fully leased until September 2029, with upward-only rent reviews in September next year and 2024.

It produces an annual gross rental income of about £610,000, translating to £35 per sq ft. The area in the borough of Hackney, where the property is located, is commonly referred to as East London Tech City or Silicon Roundabout, with over 1,000 technology firms located there.

A version of this article appeared in the print edition of The Straits Times on December 22, 2018, with the headline 'Company Briefs'. Print Edition | Subscribe