Gaw Capital pays Enviro-Hub, BS Capital S$342m for PoMo

A FUND managed by Gaw Capital Partners has agreed to acquire PoMo, a nine-storey office and retail development in Selegie Road, for S$342 million from Enviro-Hub Holdings Ltd and BS Capital.

This confirms an earlier BT article, which said the Hong Kong-based private equity real estate group was undertaking due diligence.

Under a sale and purchase agreement, Enviro-Hub and BS Capital agreed to sell their respective 51 per cent and 49 per cent stakes in F2S1 Investment, which owns PoMo.

BS Capital is owned by Enviro-Hub Holdings' controlling shareholder and executive chairman, Raymond Ng Ah Hua. The deal was brokered by CBRE.

Located near Dhoby Ghaut and Bencoolen MRT stations, PoMo sits on a site with a land area of 43,027 sq ft with a 99-year lease that commenced on March 17, 1983.

Under the Urban Redevelopment Authority's Master Plan 2014, the site is zoned for commercial use.

PoMo now has a net lettable area of about 180,000 sq ft comprising 110,000 sq ft of offices and 70,000 sq ft of retail space. The offices are fully leased while the retail space is understood to be around 85 per cent leased.

In a filing with the Singapore Exchange on Friday, Enviro-Hub said it expects to receive net proceeds of S$335 million from this proposed disposal, which are intended to be used mainly to settle the group's bank borrowings and general working capital. Its bank borrowings are expected to be reduced by S$300.8 million or 73 per cent.

"This would further strengthen the group's financial position and provide financial flexibility to the group for future potential property acquisitions should such opportunities arise," it added.