The latest reality deals in Singapore involve CDL fully acquiring Summervale Properties, Sinjia Land buying hostel operator G4 Station and Venture Corporation bagging a land plot in Penang for use by its Malaysian unit.
CDL fully acquires Summervale Properties
This move comes after its wholly-owned subsidiary, Sunmaster Holdings, completed the acquisition from Wing Tai Land (WTL), a subsidiary of Wing Tai Holdings, for a purchase consideration of S$410.96 million.
This follows both CDL and WTL evaluating methods to optimise their interests in Summervale, the owner and developer of Nouvel 18, a prime development project which is a 156-unit freehold residential development project with a net area of approximately 112,098 square feet (10,414 square metres) located along Anderson Road.
As a result of this, both corporations agreed to a consolidation of the equity interests in Summervale under a single party. This will grant flexibility for future plans relating to Summervale and Novel 18, CDL explained in a statement on Tuesday, 5 July 2016.
Sales of individual units, bulk sales or a capital markets transaction may lead to value being unlocked from the project. The acquisition is not expected to have any material impact on the net tangible assets or earnings of the CDL group for the financial year ending December and was funded via internal resources.
Sinjia Land to acquire 80% stake in G4 Station
The move is part of an effort to diversify into the property business. Currently, the firm is involved in the engineering, manufacturing and sale of customised precision elastomeric and polymeric components to various industries.
Additionally, it is developing and installing fuel cells and other clean energy systems for the generation and sale of electricity. The proposed acquisition and diversification requires shareholder approval, which will see them acquire 240,000 shares representing 80 per cent of the issued and paid-up share capital of G4 Station.
The hostel operator which manages the 23-room G4 Station Backpackers Hostel and reported losses amounting to S$201,332 in the financial year ended 30 June 2016. It reported losses of S$112,438 in 2015 year and losses of S$104,355 in FY2014.
According to Sinjia Land, G4 Station’s “business is asset light and will provide an effective contrast to the Group’s more capital intensive engineering and manufacturing business, resulting in the diversification of the Group’s income streams and risk exposure.”
The transaction will be funded through a placement of 1.4 million new Sinjia Land shares to G4 Station at 9.4 cents per share, with an approximate value of $132,800 to offset the purchase consideration. The remainder will be paid via cashier’s order or banker’s draft.
The acquisition also sees Sinjia Land seeking to diversify its core business to include property development, property investment and property management, as part of a “corporate strategy of the group to provide shareholders with diversified returns and long term growth,” and aid in expansion to new geographical markets.
Venture Corporation acquires Malaysian land in S$11.2m deal
SGX-listed Venture Corporation, a high technology design & manufacturing firm, has announced on 5 July 2016, Tuesday, that it has completed the acquisition of a land plot in Malaysia’s Batu Kawan Industrial Park for RM 33.3 million (S$11.2 million), situated in the state of Penang, Malaysia.
The acquisition of the land was funded by internal resources and is not expected to materially impact the corporations EPS or net tangible assets for the financial year ending 31 December 2016.
Plot 318 Batu Kawan Industrial Park has a land area of approximately 30.57 acres and a leasehold interest of 60 years which expires on 18 February 2074. The acquisition was conducted through Venture Corp’s subsidiary Venture Electronics Services (Malaysia).
In an announcement, Venture Corp stated that all approvals had been obtained and condition precedents fulfilled, with the acquired land to be used for Venture Electronics Services’ operations and business activities.