IOI Properties receives proposal from CEO to jointly develop Shenton House in Singapore
Shenton House covers 3,377 square metres and is designated for business usage with a gross plot ratio (GPR) of 11.2. The premises has a 44-year land contract, with the potential to be prolonged to a fresh 99-year lease.
IOIPG claimed the proposal stands for 4 months, which might be prolonged by another 2 months if a written demand is obtained from IOIPG.
The current added present funding commitment– leaving out the development cost, that is to be settled– is S$ 476 million, that includes land betterment fee, lease top-up premium, and transaction expenses, it stated.
“Further, according to the Singapore’s major business district reward scheme, Shenton House is eligible for a 25% reward gross flooring space that can be redeveloped into a mixed-use commercial with residential development or a hotel at the GPR of 14. As such, Shenton House is earmarked for redevelopment into a fresh 99-year leasehold business development,” IOIPG claimed.
According to IOIPG, Yeow Seng has actually proposed the purchase consideration be identified based on the actual expense of assets incurred by himself and Shenton 101, multiplied by the equity interest in Shenton 101 to be obtained by IOIPG, or an equivalent membership price for the membership of brand-new shares in Shenton 101.
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At market close on Tuesday, IOI Properties’ shares dropped 4 sen or 1.75% to RM2.25, bringing the business a valuation of RM12.39 billion.
Shenton 101 was the sole prospective buyer of Shenton House, that lies in Singapore’s central business center. Yeow Seng formerly said he felt it was better to bid for Shenton House through his own vehicle due to the dimension of the subject and the tight time established by the sales committee on the collective sale.
“Yeow Seng has emphasised to IOIPG that Shenton 101 is all set and capable to go ahead with the property development preparation of Shenton House under the terms of the tender and that Shenton 101 is well on the way to established funding to enable it to proceed with the redevelopment and also the purpose that Yeow Seng is extending the proposal to IOIPG is to help solve or attend to the probable dispute of interest situation,” IOIPG’s filing read.
“The good faith intention of Yeow Seng is not to make a private gain emerging from the proposal. Therefore, the consideration is to feature the first 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 had by Shenton 101 like consultants’ rates and expenses and tender, application and approval costs in addition to cost of finance,” IOIPG included.
KUALA LUMPUR (June 25): IOI Properties Group Bhd (KL: IOIPG) has actually received a proposal from its group chief executive officer cum major shareowner Lee Yeow Seng to join the development of Shenton House, a commercial property situated in Singapore that his private vehicle has actually appropriately tendered for, for S$ 538 million (RM1.9 billion).
According to a stock exchange filing, Yeow Seng has submitted that IOIPG acquire all or section of his own vehicle, Shenton 101 Pte Ltd, that is preparing to redevelop Shenton House, works for which are arranged to begin at the end of 2025.
This is to resolve and mitigate the possible dispute of attention that are going to emerge as a result of his role in the redevelopment of Shenton House through Shenton 101, through which he is the sole shareholder. The purpose of the proposal is to line up the interests of IOIPG with that of Shenton 101, that will hold the redeveloped real estate as venture upon its successful redevelopment.
Yeow Seng and his brother Datuk Lee Yeow Chor are major shareholders of IOIPG with their substantial shareholdings in Vertical Capacity Sdn Bhd, which takes 65.67% in IOIPG.
