SINGAPORE - Singapore-listed developer Tuan Sing Holdings has purchased Sime Darby Centre in Bukit Timah for S$365 million.
Its wholly-owned subsidiary, Gerbera Land Pte Ltd, signed a purchase agreement with Sime Darby Property (Dunearn) Pte Ltd last Friday, Tuan Sing announced on Monday (April 10).
US-based private equity giant Blackstone Group bought a 70-per cent stake in Sime Darby Centre for just under S$200 million last year from Malaysian palm-oil producer Sime Darby Bhd, according to media reports.
Located in an ageing commercial block along Dunearn Road and directly in front of King Albert Park MRT station, Sime Darby Centre houses tenants like kitchenware retailer ToTT, Scanteak, Cold Storage and ChildFirst pre-school.
The property sits on a part freehold and part 999 years leasehold commercial land of 13,088.8 sq m (140,886 sq ft) with an allowable gross plot ratio of 1.8 and a maximum permissible gross floor area of 23,559.8 sq m (253,595 sq ft).
Sime Darby Centre is about 96-per cent occupied over a net lettable area of approximately 18,832 sq m (202,712 sq ft), said Tuan Sing.
It said the transaction will be financed by internal and external resources and is not expected to have any material impact on its net tangible assets or earnings per share for the current financial year ending Dec 31, 2017.
Tuan Sing said it will in due course, reposition the property into a hub of activities.
"The company believes that there is a significant potential for commercial activities that can serve the needs of the vast residential community in the vicinity," said Tuan Sing. "Therefore, the company is confident that the asset shall be an excellent investment that will generate long-term revenue and profit."