Perennial to take reins of Capitol project after $528m buyout

It will buy out co-owner; development better placed to operate after deal, say observers

A business dispute held up the development of the Capitol Singapore project, which includes a hotel component. With the buyout, analysts are banking on the opening of the luxury hotel. One said attracting a new hotel operator could boost tenant sales
A business dispute held up the development of the Capitol Singapore project, which includes a hotel component. With the buyout, analysts are banking on the opening of the luxury hotel. One said attracting a new hotel operator could boost tenant sales and drive up rents.PHOTO: CAPITOL SINGAPORE

Perennial Real Estate Holdings is set to walk away as the sole owner of the Capitol Singapore project after a business dispute held up the development of the heritage site.

Mainboard-listed Perennial will buy out co-owner Pontiac Land Group affiliate Chesham Properties to the tune of roughly $528 million.

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A version of this article appeared in the print edition of The Straits Times on March 13, 2018, with the headline 'Perennial to take reins of Capitol project after $528m buyout'. Subscribe