Imperium Crown has increased its stake in an amusement park in China while Koh Brothers has acquired a mixed-used property in Seoul via a JV.
Imperium Crown increases stake in Global Entertainment Media
Imperium Crown Limited, an SGX Catalist-listed real estate developer and property investment company, is to increase its stake in Global Entertainment Media Pte. Ltd. (GEM). The transaction is subject to shareholder approval.
GEM, through its subsidiary Fei County Wonder Stone, has secured an additional 10 years of operating rights and it now holds a 50-year operating rights to Wonder Stone Park, located in a commercial precinct in Feixian County, Linyi City, Shandong province, People’s Republic of China. It also owns a hotel situated within Wonder Stone Park.
Imperium Crown had in February entered into an agreement with Fortsmith Investments to acquire 27 per cent of the issued and paid-up capital of GEM.
However, subsequent to further negotiations and discussions, Imperium Crown will now increase its acquisition stake in GEM to 60 per cent, for a purchase consideration of S$53.5 million.
GEM owns an 80 per cent stake in Fei County Wonder Stone while the remaining 20 per cent is held by a state-owned enterprise representing the state government of Feixian County, Shandong, the People’s Republic of China.
Imperium Crown executive chairman and CEO Wan Jinn Woei said, “The Wonder Stone Park is an attractive new project for Imperium Crown given the rising popularity of cultural tourism in China and the park’s well-developed infrastructure and amenities.”
He added, “Increasing our stake in GEM reflects our confidence in the park’s tourism potential and also our intention to deepen our involvement in the operations and assets under GEM. This allows us to better anticipate and address any risks arising from the localisation of operations there.”
The long-stop date for the proposed acquisition has been extended to 30 September 2017 in light of Imperium Crown’s increase in its acquisition stake in GEM. The acquisition is funded through a combination of proceeds raised from capital fundraising and/or bank financing, as well as internal funds.
Koh Brothers makes joint acquisition of Gangnam property
SGX Mainboard-listed Koh Brothers Group disclosed on Friday that it has entered the Korean property market via a joint acquisition of a freehold site in Seoul’s Gangnam-gu district for 95.8 billion Korean won (S$119.0 million), purchasing the existing YMCA building, which has a gross floor area of 17,798.5 sqm and sits on a land area of 4,610.9 sqm.
Located in the nucleus of Seoul’s central business district, the prime mixed-use asset was acquired through the Koh Brothers’ 45 per cent-owned joint venture (JV). The property is set for redevelopment into an 18-storey mixed-use development, including a 5-storey basement.
It will comprise 380 high-end residential units and 2,700 sqm of retail space. Redevelopment works are expected to commence in Q2 2018 and completed by 2020.
Koh Brothers managing director and group CEO Francis Ko said, “We see a great opportunity to enhance the yield of a prime asset in Seoul’s central business district, with the commercial units to provide a stable source of recurring income. Having established a strong niche in themed lifestyle developments in Singapore, we are pleased to have captured a rare opportunity to export our proven model overseas and diversify our asset portfolio.”