IOI Properties receives proposal from CEO to jointly develop Shenton House in Singapore

Yeow Seng and his sibling Datuk Lee Yeow Chor are significant investors of IOIPG via their substantial shareholdings in Vertical Capacity Sdn Bhd, which holds 65.67% in IOIPG.

Shenton House covers 3,377 square metres and is assigned for business use with a gross plot ratio (GPR) of 11.2. The real property has a 44-year land contract, with the potential to be stretched to a fresh 99-year lease.

This is to resolve and alleviate the prospective problem of interest that will arise due to his part in the redevelopment of Shenton House with Shenton 101, through which he is the sole shareowner. The purpose of the proposal is to line up the involvements of IOIPG with that of Shenton 101, which are going to maintain the redeveloped property as venture upon its successful redevelopment.

The existing additional current resources obligation– omitting the property development cost, that is to be finalised– is S$ 476 million, which includes land betterment fee, lease top-up premium, and operation expenditures, it claimed.

KUALA LUMPUR (June 25): IOI Properties Group Bhd (KL: IOIPG) has actually obtained a recommendation from its group chief executive officer cum major shareholder Lee Yeow Seng to join the development of Shenton House, a commercial estate situated in Singapore that his special vehicle has actually successfully tendered for, for S$ 538 million (RM1.9 billion).

According to IOIPG, Yeow Seng has proposed the acquisition consideration be determined based on the actual price of investment accumulated by himself and Shenton 101, multiplied by the equity interest in Shenton 101 to be acquired by IOIPG, or an equal registration price for the membership of new shares in Shenton 101.

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“The good faith intent of Yeow Seng is not to make a private gain developing from the proposition. As such, the factor to consider is to feature the initial cost of investment decision of equity in Shenton 101 and the expense acquired by Shenton 101 for the acquisition of Shenton House and any kind of upfront fees incurred by Shenton 101 including experts’ rates and expenses and tender, application and approval prices in addition to price of finance,” IOIPG included.

According to a bourse submission, Yeow Seng has submitted that IOIPG acquire entirety or portion of his private vehicle, Shenton 101 Pte Ltd, that is preparing to redevelop Shenton House, works for which are planned to begin by the end of 2025.

IOIPG stated the proposal stands for four months, and that might be extended by another 2 months if a written application is gotten from IOIPG.

“Further, according to the Singapore’s central business district reward program, Shenton House is qualified for a 25% reward gross floor space that 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 earmarked for redevelopment right into a fresh 99-year leasehold business enhancement,” IOIPG stated.

Shenton 101 was the single bidder of Shenton House, which lies in Singapore’s main business center. Yeow Seng previously pointed out he felt it was more appropriate to bid for Shenton House by means of his private vehicle because of the size of the subject and the limited timing established by the sales council on the collective sale.

“Yeow Seng has actually stressed to IOIPG that Shenton 101 is all ready and capable to proceed with the property development organizing of Shenton House following the conditions of the tender which Shenton 101 is well on the way to implemented funding to allow it to proceed with the redevelopment and also the purpose that Yeow Seng is expanding the contract to IOIPG is to help settle or address the probable conflict of interest situation,” IOIPG’s filing read.

At market close on Tuesday, IOI Properties’ shares dropped 4 sen or 1.75% to RM2.25, bringing the company a valuation of RM12.39 billion.


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