Singapore-listed property player are consolidating with divestments, or otherwise seeking to unlock value from selling their stakes in subsidiaries and joint ventures.
KOP to offload Cranley Hotel in $24.2m deal
Developer KOP Properties is planning to dispose off an 85 per cent-owned subsidiary, Cranley Hotel Limited, for a consideration of GBP 17.5 million (US$24.2 million), having entered into an asset purchase agreement on 25 February with Belgravia Mews Hotel for the sale of the business and the assets of CHL.
CHL owns Cranley Hotel, a 39-room boutique hotel in London. According to a filing by KOP, the book value of CHL’s assets on Jan 31 was $25.3 million and the gain on disposal is S$9 million.
According to a filing, a deposit of GBP1.75 million has been paid by Belgravia. The remaining sum will be paid upon sale completion. According to KOP, the disposal will help free up the group’s cash resources, with proceeds from the sale going towards working capital and can the repayment of the group’s borrowings.
Upon disposal, earnings per share will increase to 2.10 cents a share from 1.45 cents a share, given that net tangle assets per share will increase from 10.49 to 11.27 cents.
Keppel Land divests stakes in two property firms
Keppel Land, the property division of Keppel Corporation, has disclosed its divestment of stakes in two property companies operating in Sri Lanka and Vietnam.
The divestments are part of a focus to strengthen its presence in its core markets and growth cities, as well as recycling assets for higher returns. Through its wholly-owned subsidiary, Edmonton, Keppel Land is divesting its 60 per cent equity interest in Keppel CT Developments, a joint venture (JV) company in Sri Lanka, for a total consideration of LKR 550 million (S$5.5 million).
January 2016 saw Keppel Land and Kepventure Pte Ltd sell their 55 per cent and 45 per cent respective interests in Fernland Investment, which holds a 78.58 per cent stake in a Hanoi office building in Hanoi, for an aggregate consideration of US$10.86 million.
CapitaLand issues $100m in note issue
CapitaLand Mall Trust has issued $100 million in 10-year fixed rate notes at a rate of 3.5 per cent per annum to institutional and accredited investors. The notes are due to mature on 25 February 2026.
According to CapitaLand, funds from the note issue will be used to refinance existing borrowings, and to be listed and quoted on Singapore Exchange from 9am on 26 February. The notes have been issued under the $2.5 billion multi-currency medium-term note programme established by CMT in 2007.