Perennial Real Estate disclosed Wednesday the shareholders’ loan for the AXA Tower property set to be partially sold to Alibaba Group was S$364.7 million ($256.3 million).
Earlier this month, a consortium led by Singapore’s Perennial Real Estate announced it agreed to sell a 50 per cent stake in the AXA Tower office building to a subsidiary of Chinese e-commerce giant Alibaba Group.
The deal values AXA Tower, a 50-storey Grade A office development located in Singapore’s central business district, at S$1.68 billion ($1.2 billion).
Perennial didn’t previously reveal the size of the shareholders’ loan, but had said it would transfer half of it to Alibaba Singapore.
The Perennial Real Estate-led consortium, called Perennial Shenton Investors, or PSIPL, includes Singapore Press Holdings, HPRY Holdings and Piermont Holdings.
The consortium will transfer its 50 percent stake in Perennial Shenton Holding (PSHPL), which owns AXA Tower, and the 50 per cent of the loan outstanding to a new entity, PRE 13, or Perennial Newco, Perennial said earlier this month in a filing to the Singapore Exchange.
In a separate stock exchange disclosure, SPH said it will divest its 5.29 per cent stake in AXA Tower for approximately S$33.2 million ($23.4 million). An SPH subsidiary had paid S$19.3 million in 2015 for the stake in AXA Tower.
Once the deal is complete, the Newco will enter a deal to redevelop AXA Tower with Alibaba Singapore, it said.
HPRY Holdings and Piermont Holdings will own 20 per cent and 18 per cent of the Newco, respectively, Perennial said Wednesday. PSIHPL, Huatland Development, and other minority shareholders will hold 20 per cent each of the Newco, while PE One will own 2 per cent, the statement said.
Perennial said it will receive net cash of S$196.4 million from the deal, while it will pay around S$58.8 million for its 20 per cent stake in the Newco; the deal gives the company an effective 10 percent interest in the development project.
The funds will be used to pay down its borrowings, Perennial said.
Perennial Real Estate Holdings is an integrated real estate developer focused on Singapore and China. The company also has a presence in Ghana and Malaysia.