Lian Beng Group, the Singapore-listed construction and property developer, has agreed to acquire the BreadTalk IHQ Building from F&B player BreadTalk Group for S$118 million ($88.6 million), according to a stock exchange announcement.
The sale-cum-leaseback transaction will see BreadTalk Group leasing back the property as an anchor tenant for a term of 10 years.
The acquisition will be conducted through a consortium led by Lian Beng Group, which will hold a 75% direct stake through its wholly-owned subsidiary. Other parties in the consortium are Apricot Capital with 20% and 32RE Investments with 5%.
“This transaction is part of our capital re-allocation strategy towards a more asset-light model as we continue to focus on our core F&B business,” said BreadTalk chairman and CEO George Quek.
Lian Beng Group’s consortium will pay S$5 million in deposit upon signing of the agreement. The balance amount will be paid upon the completion of the acquisition.
Lian Beng Group’s consortium will fund its share of the purchase consideration through a combination of bank borrowings and internal resources.
In February last year, a consortium comprising Singapore-listed food and beverage player BreadTalk Group’s chairman George Quek Meng Tong and his wife Katherine Lee Lih Leng launched a take-private offer aiming to delist the business. The consortium also included Thai hospitality group Minor International PCL.