Singapore state-fund Temasek Holding and JTC Corporation, the government agency responsible for the development of industrial infrastructure, Monday announced they had reached a deal to combine four of their real estate units into a S$ 5 billion integrated platform.
The four subsidiaries include JTC’s Ascendas Pte Ltd and JURONG International Holdings Pte Ltd real estate units, and Temasek’s Singbridge Group Pte Ltd and Surbana International Consultants Holdings Pte Ltd.
The combined entity will be jointly owned by Temasek and JTC through a 51-49 partnership, the companies said, and added that the deal was expected to be completed within the first half of this year.
JTC and Temasek had began exclusive talks to explore the merger in September 2014.
Post the deal, the four real estate units will be merged into two independent operating arms – one to invest and hold assets, and the other to provide building and engineering specialist services.
This will see Ascendas and Singbridge, the asset investment and holding arm, originate, aggregate and provide urban solutions, while Surbana and JIH will form the building and engineering specialist services unit, enabling sustainable solutions through technology.
“This integrated platform creates greater scale and synergies, and provides flexibility and nimbleness in pursuing projects across the entire urban development value chain,” the companies said.
Independently, the four companies have experience in undertaking urban development projects in countries such as India and China, and the combined entity will now look to enhance business in these markets as populations in these nations increasingly move towards the cities.
Wong Kan Seng, currently the chairman of Singbridge, will be the chairman of the asset investment & holding arm, while Miguel Ko, executive director of Singbridge, will take on the role of CEO.
The current chairman of Surbana, Liew Mun Leong, will chair the building & engineering specialist services arm, with Wong Heang Fine as the CEO.
The four operating subsidiaries should see minimal impact to their current business and operations.
DBS Bank and Wong Partnership LLP are acting as financial advisor and legal counsel to JTC respectively. TC Capital Pte Ltd and Allen & Gledhill LLP are acting as financial advisor and legal advisor to Temasek respectively.