SG Realty: FCOT raises funds for London buy; KHS China JV, Roxy-Pacific make acquisitions

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FCOT has raised funds through a private placement, KSH Holdings has invested in a Chinese developer and Roxy-Pacific has acquired a residential development.

FCOT raises funds via private placement, to acquire Farnborough Business Park

In a stock exchange filing, retail landlord Frasers Commercial Trust (FCOT) has priced an upsized S$100 million placement of units at S$1.48 apiece, which is the top end of its indicated price range. It plans to issue at least S$80 million of units priced between S$1.44 and S$1.48 per unit, with an over-allotment option of at least S$17.8 million.

DBS Bank and Merrill Lynch (Singapore) were joint book runners for the private placement, which was over five times subscribed and saw participation from new and existing institutional investors.

With the exercise of the upsize option, a total of 67.6 million new units will be issued, with the issue price of S$1.48 representing a discount of 3.4 per cent to the volume weighted average price of S$1.53 for trades done on 23 January 2017, the date the placement agreement was entered into.

According to FCOT’s manager, Frasers Centrepoint Asset Management (Commercial) Ltd, most proceeds will partially fund the proposed acquisition of a 50 per cent stake in Farnborough Business Park. The property is located at Farnborough, Thames Valley, in the west of London. The remaining S$1.5 million of the proceeds will be used to pay placement-related expenses.

Additionally, FCOT will finance the acquisition of Farnborough Business Park through a combination of equity and debt financing, so as to “ensure that the proposed acquisition will provide overall distribution per unit accretion to unitholders while maintaining a well-balanced capital structure”, it said.

KSH Holdings JV acquires China developer

KSH Holdings and KAP Holdings (China), an Oxley, Heeton and Lian Beng joint venture (JV), are investing RMB145 million (S$29.8 million) in the developer of a property project in Gaobeidian in Hebei province in China, according to details in an SGX filing.

Hebei Yue Zhi is a real estate development and management company in charge of the development project in Gaobeidian, Hebei. KSH’s share is to be funded by internal resources and external borrowings.

The transaction will see KSH International Investment (KSH II), a subsidiary of KSH, acquire a 22.5 per cent stake in Hebei Yue Zhi Real Estate Development for a consideration of RMB45 million.

KAP is jointly owned by Oxley Holdings (55 per cent), Lian Beng Group (20 per cent) and Heeton (15 per cent) with the 50 per cent stake in Hebei Yue Zhi worth RMB100 million. Post-acquisition, the registered capital of Hebei Yue Zhi will increase to RMB 200 million from RMB 55 million.

The vendors of the deal, Jia Hua and Lei Hua, who previously owned 82 per cent and 18 per cent respectively, will see their stakes reduced to 22.5 per cent and 5 per cent respectively.

Roxy-Pacific JV acquires Kismis View

Roxy-Pacific Holdings, through its wholly-owned subsidiary RP Ventures and joint venture (JV) partner TE2 Development, has acquired Kismis View for S$102.8 million.

TE2 Development is a private family office of Tong Eng Group’s group managing director, Teo Tong Lim. The residential site has a tenure of 99 years from Nov 21, 1983, with a total land area of about 90,863 sq ft and an existing plot ratio of 1.4 and is subject to obtaining the necessary approvals from the relevant authorities to issue a fresh 99-year lease for the property.

RP Ventures and TE2 Development will establish a new company to purchase and redevelop the property, with RP Ventures holding a 60 per cent stake and TE holding the remainder. The transaction is to be funded through internal funds and bank borrowings.

Also Read:

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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.