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

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

IOIPG said the plan stands for four months, which might be prolonged by another two months if a written application is obtained from IOIPG.

According to a stock exchange filing, Yeow Seng has actually suggested that IOIPG get entirety or part of his private vehicle, Shenton 101 Pte Ltd, which is intending to redevelop Shenton House, works for which are planned to begin rearmost of 2025.

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

“Further, according to the Singapore’s major business district incentive scheme, Shenton House is qualified for a 25% bonus gross flooring space that can be redeveloped into a mixed-use commercial with non commercial project or a hotel at the GPR of 14. As such, Shenton House is allocated for redevelopment into a fresh 99-year leasehold commercial improvement,” IOIPG stated.

“The good faith intent of Yeow Seng is not to make a private gain occurring from the proposition. Because of this, the factor to consider is to include the initial cost of investment decision of equity in Shenton 101 and the price incurred by Shenton 101 for the procurement of Shenton House and any upfront charges incurred by Shenton 101 like professionals’ rates and expenditures and tender, application and authorization costs as well as price of finance,” IOIPG included.

The present additional current capital commitment– excluding the development cost, which is to be finalised– is S$ 476 million, which includes land improvement fee, rent top-up costs, and transaction costs, it stated.

KUALA LUMPUR (June 25): IOI Properties Group Bhd (KL: IOIPG) has actually obtained a proposition from its group president cum major shareholder Lee Yeow Seng to participate in the property development of Shenton House, a business estate situated in Singapore that his special vehicle has actually appropriately tendered for, for S$ 538 million (RM1.9 billion).

Cuscaden Reserve price

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

Shenton 101 was the single bidder of Shenton House, that is located in Singapore’s main business center. Yeow Seng previously stated he felt it was better to bid for Shenton House through his private vehicle because of the size of the subject and the stiff timing set by the sales board on the collective sale.

This is to attend to and mitigate the potential dispute of interest that are going to occur as a result of his job in the redevelopment of Shenton House via Shenton 101, through which he is the single shareowner. The objective of the proposal is to coordinate the matters of IOIPG thereupon of Shenton 101, that will maintain the redeveloped real estate as venture upon its effective redevelopment.

According to IOIPG, Yeow Seng has recommended the purchase factor be figured out based upon the real price of assets incurred by himself and Shenton 101, increased by the equity interest in Shenton 101 to be obtained by IOIPG, or an equivalent membership price for the membership of new stakes in Shenton 101.

“Yeow Seng has emphasised to IOIPG that Shenton 101 is all ready and capable to proceed with the property development preparation of Shenton House under the terms of the tender and that Shenton 101 is well on the way to put in place funding to enable it to advance with the redevelopment and that the purpose that Yeow Seng is expanding the proposition to IOIPG is to aid deal with or attend to the probable problem of interest situation,” IOIPG’s filing read.

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