Global Yellow Pages acquires majority stake in blockchain firm FundPlaces

Singapore

GLOBAL Yellow Pages (GYP) on Friday said that its subsidiary is looking to acquire a majority stake in proptech company FundPlaces, and that it would do this by subscribing for new shares representing about 50.11 per cent of the company for S$2.004 million.

FundPlaces uses blockchain technology to operate an online platform, which allows investors to invest in the development, financing and ownership of real estate projects globally.

In a filing to the Singapore Exchange, GYP said: "Having a strategic stake in FundPlaces through the proposed subscription would enable the group to continually leverage on the FundPlaces platform as an additional avenue for the group to raise funds for its property development projects, which would synergistically benefit and complement the group's property business." It added that it also sees "significant potential" in the FundPlaces platform in light of the shift in business trends towards advancements in the technological and digital sphere.

Singapore developers have increasingly been investing in proptech companies to complement their own businesses. For instance, City Developments has invested in Chinese online apartment rental platform mamahome and Chinese co-working space operator Distrii.

CapitaLand, through its corporate venture fund, C31 Ventures, has invested in co-working space provider The Great Room and online table reservation company Chope. CapitaLand will also be launching an exclusive online mall on Lazada Singapore in its bid to become an omni-channel retail landlord. Meanwhile, its serviced-residence unit Ascott has invested in Tujia.com, the largest online accommodation sharing platform in China.

Woh Hup unit Aurum Investments has launched a venture capital fund and invested US$1.5 million in seed funding in co-living startup Hmlet.

GYP said that its latest investment is part of its push to develop its core property business, which includes property-related investments and property development and management.

The company had obtained a diversification mandate from shareholders to diversify into property in 2015. Since then, it has acquired Pakuranga Plaza and a plot of freehold land in Queenstown, New Zealand, as well as obtained conditional consent from the Queenstown Lakes District Council to build 225 apartments on the Queenstown land.

This year, GYP also entered into a conditional agreement to buy a plot of land in Papakura, New Zealand, which, if completed, would be the group's third purchase of real estate.

FundPlaces co-founder Tan Kok Keong told The Business Times: "FundPlaces is looking forward to working with GYP to raise capital for its New Zealand projects, and to continue to source for deals from Australia and the United Kingdom."

GYP plans to get additional investors to invest alongside it for the proposed subscription, by getting these additional investors to obtain a stake in its subsidiary.

"In the interests of time and to avail itself of this strategic opportunity to invest into FundPlaces ... the company has decided to first proceed with the proposed subscription," it said.

It plans to get these investors on board after completing the first tranche subscription (for about S$500,000), but before the completion of the second and subsequent tranches.

Before GYP's subscription, the sole shareholder of FundPlaces was Rems Advisors, a Singapore-incorporated company which engages in real-estate research and consultancy services. It is 40 per cent owned by the co-founders of FundPlaces, Brian Wee and Mr Tan.

The remaining 60 per cent is owned by family office Vogue Capital Group.

Following the completion of the first tranche subscription, GYP's subsidiary and Rems will enter into a shareholders' agreement; this will include terms, one of which is that each side can appoint two directors each to the board of FundPlaces. GYP's subsidiary will be entitled to appoint the chairman of the board, who will have a casting vote at board meetings.

Under the agreement, Rems will not dispose of its shares in FundPlaces prior to an initial public offering of the shares in FundPlaces.

GYP plans to finance the share subscription using internal funds and/or bank borrowings. Its counter rose 1.4 per cent or 0.2 Singapore cent to S$0.146 on Friday.