SG Dealbook: Lum Chang to develop Malaysian property; Kingsmen purchases Changi land; AP Oil launches new China JV

Old books. Credit: DeviantArt/Stephanie-inlove

Singapore firms are expanding abroad, testing overseas markets in the realty sector, as well as forming joint ventures (JVs) with local partners. This reflects a larger trend of Singapore-based small & medium enterprises testing unfamiliar markets abroad via merger & acquisition activity. Lum Chang is exploring a mixed-used project in Petaling Jaya, Kingsmen Creative is building a new HQ in Changi and AP Oil has launched a new Chinese JV.

Lum Chang to explore development of Petaling Jaya mixed-use property

Lum Chang Holdings is exploring the co-development of a mixed-use commercial property at No 9 and 11 Jalan Semangat, 46200 Petaling Jaya, Selangor, in collaboration with Tien Wah Press Holdings Berhad.

Singapore-listed New Toyo International Holdings is the holding company of Tien Wah Press. According to Lum Chang, the project could represent a “prime investment opportunity to expand the group’s property and development portfolio in Malaysia”

Currently, the land is zoned for industrial use. Lum Chang is seeking to gain approval from the relevant Malaysian authorities to alter its use to commercial purposes, enabling the initiation of a mixed-use commercial development.

In a regulatory filing, Lum Chang stated: “The JV Parties may if deemed appropriate apply to extend the lease of the land to not less than 99 years.”

Petaling Jaya was originally developed as a satellite township for Kuala Lumpur. It is surrounded by Kuala Lumpur to the east, the Gombak District to the north, the state capital of Selangor, Shah Alam to the west and Subang Jaya to the south.

In the last decade, there has been a proliferation of shopping malls and the property prices in Petaling Jaya have seen an increase in value as more city dwellers migrate into the area, due to an abundance of amenities as well as the relative safety and comfort it offers  as a residential district.

With the disclosure of exiting light rail infrastructure being extended to the district linking it to other major satellite cities in the area, in the long run the value of properties in the area are predicted to see an increase in coming years.

AP Oil incorporates new China JV

AP Oil International, a specialty chemicals and oils manufacturer, has incorporated a new subsidiary in China, of which it holds 51 per cent stake in, in terms of registered capital.

Known as AP Oil Singapore (Chongqing), the remaining 49 percent of the JV is held by Chongqing New Era Lubricant Co. Currently, the total registered capital of AP Oil Chongqing is RMB2 million (S$400,000) and the JV will be involved in the sale, import and export, and distribution of lubricants and related products.

According to a regulatory filing, AP Oil says the incorporation will be funded through internal resources and not expected to impact its financial health for the 2015 fiscal period. Currently, AP Oil possesses a market capitalisation of S$37.84 million as of 25 August 2015.

Kingsmen Creatives purchases Changi land for new HQ, increases stake in Ooh-Media

Kingsmen Creatives, which function as the interior fit-out specialists for retail stores, theme parks and museums,has acquired 5,251 square metres of vacant leasehold land at Plot 19 in Changi Business Park for S$7.1 million from JTC Corporation. This plot will be used to build a multi-storey building serving as Kinsmen’s new headquarters.

Kingsmen Creatives specialises in the design and production of exhibits for exhibitions, museums, visitor centres, events, promotional functions and festivities, as well as designing and producing interiors for retail stores, eateries, corporate offices, showrooms, and other commercial interiors.

Currently, the headquarters of the group is located in rented premises at 3 Changi South Lane, Kingsmen Creative Centre. “Owing to anticipated future expansion of the group’s operations, the group will require additional space to accommodate the expansion,” says Kingsmen Creatives.

According to Kingsmen, the acquisition of the property and the construction of the new HQ will enable better planning and management for further business development and operational expansion, while removing rental pressure from its business calculations as it expands.

As part of its business expansion, Kingsmen is also increasing its stake by a further 5 percent (14,500 shares) in Kingsmen Ooh-Media (KOM) for S$49,000.

The acquisition will raise Kingsmen Creatives’s shareholding in KOM to 70 per cent or 203,000 shares from 65 percent. KOM was incorporated in Singapore in October 2005 and deals with advertising services, design consultancy, project and event management and marketing communication, in terms of

The principal activities of KOM’s subsidiary are design consultancy, project and events management, and provision of special design and construction facilities to exhibitors. Unaudited book value and unaudited net tangible asset value of KOM and its subsidiary were reported o be worth S$981,000 as of 31 July 2015

This purchase is being funded via corporate internal resources and in cash. Currently, Kingsmen Creative has a reported market share of S$163.2 million and a price to earnings ratio of 10.54, as of 25 August 2015.

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SG Dealbook: LTA issues $1.2b in bonds; F&N seeking acquisitions in ASEAN

SG Dealbook: OUE Commercial Reit establishes $1.5b multi-currency debt programme; Aspial enlarges bond placement tranche to $50m, cuts public tranche to $25m

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.