Swee Hong sells rights to foreign workers' dormitory to Crest Capital for S$30m

SWEE Hong Limited said it has agreed to sell the rights, benefits, obligations and liabilities arising from constructing, operating and managing a foreign workers' dormitory, known as North Coast Lodge, to private equity firm Crest Capital Asia for S$30 million.

The sale and purchase agreement was inked on Thursday between Swee Hong and Crest Industrial Holdings II Pte Ltd - a special purpose vehicle set up by Crest Capital Asia and the latter's managed fund called Value Monetization Fund III.

Swee Hong currently sub-leases the dormitory from the Building & Construction Authority (BCA) for an initial three-year term commencing since Sept 1, 2013, that can be renewed for a further two three-year terms.

The dormitory at 300 Admiralty Road West is built on a 49,684.9 sq m site and comprises eight blocks of four-storey dormitory buildings with a total capacity of 9,000 beds, a two-storey ancillary administration/amenities building, and a single-storey ancillary laundry building, electrical sub-station and refuse centre.

Phase 1 construction, with a capacity of 4,500 beds, received its temporary occupation permit (TOP) in December, and the TOP for the Phase 2 construction is pending.

Swee Hong had earlier entered into a similar agreement with S11 Capital Investments concerning the same property, but shareholders holding 56.27 per cent of the shares in Swee Hong declined to support the agreement. Instead, they informed the group of their support for an offer from Crest.