HPL, private funds invest in Gillman Heights
HOTEL Properties Limited (HPL) and two private funds are to take a stake in CapitaLand’s investment in Gillman Heights, a former HUDC estate off Alexandra Road.
They will acquire 50 per cent of Ankerite, a CapitaLand subsidiary that bought Gillman Heights en bloc in February for $548 million.
CapitaLand will place out 500,000 shares of Ankerite to HPL and the funds for $500,000 in cash. HPL, controlled by tycoon Ong Beng Seng, will take half this stake while the funds will take the other half.
Under the deal, HPL and the funds will also extend shareholders’ loans based on Ankerite’s net tangible assets. These comprise $16.4 million in stamp duty for Gillman Heights and another $27.4 million, which represents a 5 per cent deposit on the purchase price.
CapitaLand said a statement yesterday that it will use the funds from the Ankerite placement to buy other sites ‘to cater to a broad spectrum of home buyers’.
It will be the lead development manager for the project that will replace Gillman Heights and will be responsible for ‘the full spectrum of sales and marketing, product design and development and project management’.
The deal is forecast to be completed by next month. It is not expected to have any impact on the financials of CapitaLand or HPL for the financial year ending Dec 31.
Source : Straits Times - 16 May 2007
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