Singapore-headquartered Perennial Real Estate Holdings (Perennial) is acquiring the iconic Capitol Singapore after buying out its co-owner Chesham Properties (Chesham) for S$129.6 million ($98.7 million).
In a disclosure, the Singapore-listed integrated real estate and healthcare company said Chesham has elected to sell its shares in Capitol Investment Holdings, Capitol Retail Management, and Capitol Hotel Management to Perennial at a price of S$129.6 million.
Upon completion of the deal, Perennial is also expected to discharge Chesham’s loans to the Capitol entities amounting to S$368.6 million ($281 million) and pay S$3 million ($2.28 million) to Pontiac-linked Patrina Hotels & Resorts. Chesham Properties is an affiliate of Pontiac Land Group.
“The consideration will be paid in cash on completion and was based on a property price of $1.028 billion, which is 2.6 per cent above the 2017 property valuation of approximately $1.002 billion,” Perennial said, adding that it will fund the acquisition using internal resources and borrowings.
In 2010, Perennial, Chesham, and a third party, which later left the joint venture, picked up the landmark Capitol site. The partnership, however, soured and disagreements started by 2013.
As a real estate owner, developer, and manager, Perennial focuses strategically on large-scale mixed-use developments and has a presence in China, Singapore, Malaysia and Ghana with a combined portfolio spanning about 54 million square feet in gross floor area.
In Singapore, Perennial has invested in and manages prime iconic properties located in the Civic District, Central Business District and Orchard Road precinct, such as CHIJMES, Capitol Singapore, AXA Tower, TripleOne Somerset, House of Tan Yeok Nee and Chinatown Point.