IOI Properties receives proposal from CEO to jointly develop Shenton House in Singapore
According to a stock market declaration, Yeow Seng has suggested that IOIPG obtain all or section of his own vehicle, Shenton 101 Pte Ltd, which is intending to redevelop Shenton House, works for which are set up to commence at the end of 2025.
“Further, according to the Singapore’s major business district benefit scheme, Shenton House is eligible for a 25% reward gross floor area which can be redeveloped into a mixed-use commercial with non commercial development or a hotel at the GPR of 14. As such, Shenton House is set aside for redevelopment into a fresh 99-year leasehold commercial improvement,” IOIPG stated.
Shenton House covers 3,377 square metres and is assigned for commercial usage with a gross plot ratio (GPR) of 11.2. The property has a 44-year land lease, with the possible to be extended to a fresh 99-year lease.
“Yeow Seng has stressed to IOIPG that Shenton 101 is all ready and able to proceed with the development preparation of Shenton House within the terms of the tender which Shenton 101 is well on the way to put in place funding to enable it to advance with the redevelopment and also the factor that Yeow Seng is extending the proposition to IOIPG is to aid settle or address the probable dispute of interest situation,” IOIPG’s filing read.
“The good faith intent of Yeow Seng is not to make a private gain developing from the proposition. Thus, the consideration is to feature the preliminary cost of investment decision of equity in Shenton 101 and the price accumulated by Shenton 101 for the acquisition of Shenton House and any kind of upfront fees incurred by Shenton 101 including professionals’ payments and expenses and tender, application and approval costs in addition to cost of finance,” IOIPG added.
At market close on Tuesday, IOI Properties’ shares lost four sen or 1.75% to RM2.25, giving the company a value of RM12.39 billion.
The current added current resources commitment– leaving out the property development cost, that is to be finalised– is S$ 476 million, that includes land improvement fee, rent top-up premium, and transaction expenses, it said.
IOIPG stated the proposition stands for four months, and that may be prolonged by an additional two months if a written application is gotten from IOIPG.
KUALA LUMPUR (June 25): IOI Properties Group Bhd (KL: IOIPG) has actually received a proposal from its group president cum major investor Lee Yeow Seng to participate in the property development of Shenton House, a commercial estate located in Singapore that his special vehicle has appropriately tendered for, for S$ 538 million (RM1.9 billion).
Shenton 101 was the single bidder of Shenton House, which lies in Singapore’s major business section. Yeow Seng previously pointed out he felt it was more appropriate to bid for Shenton House using his exclusive vehicle because of the dimension of the subject and the stiff timing set by the sales committee on the collective sale.
This is to attend to and reduce the prospective problem of interest that are going to occur because of his job in the redevelopment of Shenton House through Shenton 101, in which he is the single shareowner. The intention of the proposition is to align the matters of IOIPG with that of Shenton 101, which are going to maintain the redeveloped real estate as investment upon its effective redevelopment.
According to IOIPG, Yeow Seng has actually proposed the acquisition factor be established based on the real price of assets incurred by himself and Shenton 101, increased by the equity interest in Shenton 101 to be obtained by IOIPG, or a comparable registration worth for the membership of brand-new shares in Shenton 101.
Yeow Seng and his sibling Datuk Lee Yeow Chor are major investors of IOIPG via their significant shareholdings in Vertical Capacity Sdn Bhd, which carries 65.67% in IOIPG.