Perennial Real Estate, SPH boost stakes in Chinatown Point

By Lee Meixian

PERENNIAL Real Estate Holdings and Singapore Press Holdings (SPH) on Friday (Nov 3) signed a sale-and-purchase agreement with Charles Quay International to acquire 5.49 per cent and 3.33 per cent, respectively of the partnership interests in Perennial Chinatown Point.

Charles Quay International is the vehicle of an unnamed Chinese individual who is selling off his entire stake in Perennial Chinatown Point.

The latter owns the retail mall and four strata office units in Chinatown Point.

Perennial Group currently holds a 45.15 per cent in Perennial Chinatown Point, while SPH owns 27.35 per cent.

Following the acquisition, Perennial's effective interest in the holding company will increase to 50.64 per cent, maintaining its position as the largest investor of Chinatown Point Mall.

SPH's stake will increase to 30.68 per cent.

The consideration Perennial Group will pay for its stake is about S$8.48 million, to be satisfied by cash.

It also translates to a purchase price of about S$2,080 per square foot of net lettable area.

SPH will pay about S$5.14 million, also in cash.

The consideration was derived based on the agreed property value of S$442.5 million, less the outstanding bank borrowings and adjusted for sale partnership interest.

It was calculated on the same basis as the acquisition of a combined 60 per cent interest in the development by both Perennial and SPH in December 2016.

Both firms said that the acquisition has no material impact on their earnings and the net tangible asset per share for their current financial years.

Perennial ended half a cent higher at 88 cents while SPH finished two cents lower at $2.66.