IOI Properties receives proposal from CEO to jointly develop Shenton House in Singapore

According to IOIPG, Yeow Seng has actually suggested the acquisition consideration be determined based on the real price of assets incurred by himself and Shenton 101, multiplied by the equity interest in Shenton 101 to be acquired by IOIPG, or a comparable membership worth for the subscription of new stakes in Shenton 101.

“Yeow Seng has emphasised to IOIPG that Shenton 101 is all ready and capable to move on with the improvement preparation of Shenton House within the conditions of the tender and that Shenton 101 is well on the way to implemented funding to enable it to proceed with the redevelopment and also the reason that Yeow Seng is expanding the proposal to IOIPG is to aid resolve or address the possible conflict of interest circumstance,” IOIPG’s declaring read.

According to a stock market filing, Yeow Seng has actually suggested that IOIPG get all or part of his private vehicle, Shenton 101 Pte Ltd, which is preparing to redevelop Shenton House, works for which are arranged to commence at the end of 2025.

Yeow Seng and his sibling Datuk Lee Yeow Chor are significant investors of IOIPG with their significant shareholdings in Vertical Capacity Sdn Bhd, that takes 65.67% in IOIPG.

IOIPG said the plan stands for four months, and that may be lengthened by another 2 months if a written request is received from IOIPG.

“The good faith intention of Yeow Seng is not to make a personal gain occurring from the proposition. Therefore, the factor to consider is to feature the preliminary cost of investment of equity in Shenton 101 and the expense acquired by Shenton 101 for the purchase of Shenton House and any type of advance costs incurred by Shenton 101 including professionals’ payments and expenses and tender, application and approval expenses as well as price of finance,” IOIPG included.

At market close on Tuesday, IOI Properties’ shares dropped 4 sen or 1.75% to RM2.25, bringing the business a value of RM12.39 billion.

Shenton House covers 3,377 square metres and is assigned for commercial use with a gross plot ratio (GPR) of 11.2. The premises has a 44-year land lease, with the possible to be extended to a fresh 99-year lease.

This is to attend to and minimize the possible dispute of interest that will arise as a result of his part in the redevelopment of Shenton House through Shenton 101, through which he is the single shareholder. The objective of the proposition is to arrange the matters of IOIPG with that of Shenton 101, which are going to support the redeveloped real property as investment upon its effective redevelopment.

Shenton 101 was the sole prospective buyer of Shenton House, which is located in Singapore’s central business district. Yeow Seng formerly stated he felt it was better to bid for Shenton House via his own vehicle due to the dimension of the subject and the limited time set by the sales council on the collective sale.

Marina View Residences showflat location

“Further, according to the Singapore’s main business district incentive scheme, Shenton House is qualified for a 25% reward gross floor area that can be redeveloped into a mixed-use commercial with non commercial development or a hotel at the GPR of 14. Because of this, Shenton House is set aside for redevelopment into a fresh 99-year leasehold business enhancement,” IOIPG stated.

The present additional current capital commitment– omitting the development cost, which is to be finalised– is S$ 476 million, that includes land betterment premium, lease top-up costs, and transaction expenses, it said.

KUALA LUMPUR (June 25): IOI Properties Group Bhd (KL: IOIPG) has actually received a recommendation from its group president cum major shareowner Lee Yeow Seng to participate in the development of Shenton House, a business property located in Singapore that his private vehicle has effectively tendered for, for S$ 538 million (RM1.9 billion).

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