Temasek, JTC merge 4 realty cos to form S$5b urban development giant

JTC's Jurong Island. Visual from company website

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.

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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.

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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.

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Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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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.