Singapore-based SC Capital Partners is acquiring a property asset in Australia from Malaysia-listed real estate company UEM Sunrise Bhd for A$107 million ($72.6 million), according to a stock exchange announcement.
SC Capital Partners has fully acquired the property through its Australia-registered entity, Real Estate Capital Partner V (RECAP V). The 21-storey building, located on 412 St Kilda Road in Melbourne’s Central Business District, has 16.258 sq m net lettable area and 174 car park bays.
In May 2019, SC Capital announced its final close of RECAP V for $850 million, as reported by DealStreetAsia. Through its RECAP funds, SC Capital focuses on opportunistic real estate projects such as residential, office, retail, warehouses and hotel properties. RECAP funds invest across Asia Pacific that include Japan, Greater China, South Korea, Thailand, Malaysia, Singapore, Indonesia, Australia and New Zealand.
UEM Sunrise acquired Melbourne asset in May 2016 at a valuation of A$58 million. Following the divestment, UEM Sunrise expects to book 54.3 million ringgit (A$19.12 million) net disposal gain from the divestment. The Group expects to receive positive contribution to the company’s earnings, earnings per share (EPS) and net tangible asset per share.
The firm will deploy the proceeds to meet working capital needs and to pursue investments and other venture opportunities, per the filing.
The transaction is expected to complete by December 20, 2019. Prior to the settlement date, the buyer will need to obtain an approval from Australia’s Foreign Investment Review Board (FIRB). However, if FIRB approval is not secured within 45 business days from the agreement, then either party could terminate the contract or mutually extend the approval date.
Earlier in September 2019, UEM Sunrise announced the termination of contract of sale with Singapore’s Ascendas Hospitality Trusts as both parties failed to resolve their disagreement. The asset on sale was Aurora Melbourne Capital, an 88-storey mixed-use development project with 959 residential apartments, 252 serviced apartments, office suites and retail. Aurora Melbourne Capital noted A$750 million of total gross development value (GDV), according to the announcement in September.