IOI Properties receives proposal from CEO to jointly develop Shenton House in Singapore
The current added present capital obligation– excluding the property development cost, which is to be settled– is S$ 476 million, which includes land improvement rates, rent top-up costs, and transaction expenses, it said.
IOIPG claimed the proposition is valid for 4 months, and that might be prolonged by one more two months if a written demand is obtained from IOIPG.
“Yeow Seng has actually stressed to IOIPG that Shenton 101 is all set and capable to continue with the development organizing of Shenton House following the conditions of the tender and that Shenton 101 is well on the way to implemented funding to allow it to advance with the redevelopment and also the factor that Yeow Seng is expanding the contract to IOIPG is to assist fix or deal with the possible problem of interest situation,” IOIPG’s filing read.
This is to deal with and minimize the possible dispute of attention that will develop due to his job in the redevelopment of Shenton House with Shenton 101, through which he is the sole shareowner. The intent of the proposal is to coordinate the involvements of IOIPG with that of Shenton 101, that will keep the redeveloped real estate as investment upon its successful redevelopment.
Yeow Seng and his brother Datuk Lee Yeow Chor are significant investors of IOIPG through their considerable shareholdings in Vertical Capacity Sdn Bhd, which carries 65.67% in IOIPG.
KUALA LUMPUR (June 25): IOI Properties Group Bhd (KL: IOIPG) has actually gotten a plan from its group chief executive officer cum major investor Lee Yeow Seng to take part in the development of Shenton House, a business property located in Singapore that his private vehicle has appropriately tendered for, for S$ 538 million (RM1.9 billion).
Tembusu Grand Jalan Tembusu Road
According to IOIPG, Yeow Seng has proposed the acquisition consideration be determined based upon the actual expense of assets incurred by himself and Shenton 101, increased by the equity interest in Shenton 101 to be acquired by IOIPG, or an equivalent registration value for the membership of new shares in Shenton 101.
Shenton 101 was the sole prospective buyer of Shenton House, which lies in Singapore’s central business section. Yeow Seng previously stated he felt it was better suited to bid for Shenton House through his own vehicle due to the dimension of the subject and the limited timing set by the sales council on the collective sale.
“The good faith purpose of Yeow Seng is not to make a personal gain developing from the proposal. Thus, the consideration is to involve the initial expense of investment decision of equity in Shenton 101 and the price acquired by Shenton 101 for the purchase of Shenton House and any advance charges had by Shenton 101 like professionals’ fees and expenditures and tender, application and authorization expenses as well as price of finance,” IOIPG added.
Shenton House covers 3,377 square metres and is marked for business usage with a gross plot ratio (GPR) of 11.2. The property has a 44-year land lease, with the possible to be stretched to a fresh 99-year lease.
“Further, according to the Singapore’s central business district reward scheme, Shenton House is eligible for a 25% bonus gross flooring space which can be redeveloped right into a mixed-use commercial with non commercial development or a hotel at the GPR of 14. Therefore, Shenton House is set aside for redevelopment into a fresh 99-year leasehold commercial development,” IOIPG stated.
According to a bourse declaration, Yeow Seng has submitted that IOIPG acquire all or part of his private vehicle, Shenton 101 Pte Ltd, that is preparing to redevelop Shenton House, works for which are arranged to begin rearmost of 2025.
At market close on Tuesday, IOI Properties’ shares dropped four sen or 1.75% to RM2.25, bringing the business a worth of RM12.39 billion.
