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May 08, 2019
New Straits Times : Amprop in JV to buy an office building in Singapore
 
Amprop in JV to buy an office building in Singapore

May 8, 2019 @ 9:47pm

KUALA LUMPUR: Amcorp Properties Bhd (Amprop) is acquiring an effective stake of 20 per cent in two premium Grade A office towers in Tampines Grande, Singapore, which involves a funding commitment of S$24 million (RM73.2 million).

In a filing with Bursa Malaysia, it said wholly-owned subsidiary Amprop Synergy Pte Ltd today signed a joint-venture agreement (JVA) to subscribe to 40 per cent equity interest in SRIF Amcorp Pte Ltd (JVCo) for S$40 (RM122).

In turn, JVCo owns a 50 per cent stake in Ascend TGrande Pte Ltd, which is in the process of buying the commercial blocks.

Under the JVA, Amprop and its partners – SRIF Pte Ltd and an endowment fund deemed to be established under Nanyang Technological University – agree to fund the JVCo, whether by equity or loans, proportionately according to their shareholding percentage for the purchase and other costs of the property.

Meanwhile, JVCo has inked an agreement with Ascend TGrande’s other 50 per cent owner, Metrobilt Construction Pte Ltd, for the purpose of acquiring the entire equity interest in T-Grande Investment Holding Pte Ltd, the ultimate owner of the two towers.

The office building, with 287,651 square foot of lettable space, has a net book value of about RM1.12 billion. Its two blocks are linked by a double-volume entrance lobby with food and beverage outlets on the ground floor and a basement carpark.

Amprop said the joint venture is part of a strategic move to expand its footprint into Singapore, which is ranked the fifth highest Asia-Pacific city in terms of rental value.

“It is also in line with Amprop’s investment strategy to focus on properties in key developed global cities and partnership with reputable property developers for its overseas projects,” it said.

Amprop Synergy’s contribution commitment will be funded by advances from the Amprop group and through internally generated funds.

The joint venture is not expected to have a material effect on the group’s earnings in the current financial year ending March 31, 2020, but is expected to contribute positively in the following years.

– BERNAMA

 
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