HK-listed Far East Consortium acquires Singapore property for $70m

Singapore
Pedestrian stand along a promenade in front of commercial buildings standing in the central business district in Singapore, on Friday, Feb. 16, 2018. Photographer: Ore Huiying/Bloomberg

Hong Kong-listed Far East Consortium International Ltd (FEC) has acquired a prime residential property, 21 Anderson Royal Oak Residence, in Singapore for a total consideration of S$93 million ($70 million).

As part of the deal, FEC has entered into a sale and purchase agreement with Amber Investment Holding (Cayman) to acquire 100 per cent of the issued and paid-up capital of Highest Reach Investments Ltd and the shareholder loan at S$93 million ($70 million) under a credit facility of about S$103 million ($77.33 million).

According to The Straits Times, the actual seller is private equity firm Blackstone acting through Amber Investment, which bought the property in 2014 for about S$164 million ($123.13 million). FEC has conducted the deal through its subsidiary Advance Delight Global Ltd.

Through its subsidiaries, Highest Reach Investments owns a freehold, 34-unit residential property with a total gross floor area of 87,000 sq ft in District 10 in Singapore.

FEC managing director Chris Hoong said, the company intends to hold the site for investment purpose before any potential redevelopment due to its prime location.

“This acquisition is a good opportunity for the group to replenish the land bank in Singapore, generating recurring cash flow before the redevelopment and adding to its overall development pipeline following the successful launch of Artra in 2017. FEC will continue to adopt the regionalisation strategy and expand residential pipeline in order to deliver long-term benefits to our shareholders,” he said.

Last year, FEC had launched a 400-unit mixed-used development, Artra, in Alexandra View, Singapore. The company’s main focus is in property development and investment, hotel operations and management as well as car park operations and facilities management.

Last month, FEC’s unit FEC Properties had successfully bid for a 5,722.5 sq m residential Government Land Sales site in Cuscaden at a price of S$410 million ($308 million), earmarked for a luxury residential development.

In April, it tied-up with SGX-lised Koh Brothers Group to acquire and develop the Hollandia and The Estoril collective sales sites for S$183.38 million ($137.68 million) and S$223.94 million ($168.13 million) respectively.

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