Perennial Real Estate says AXA Tower shareholder loan amounts to $256.3m

Photo by Duy Nguyen on Unsplash

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.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.