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Perennial in JV to develop mixed-use project in Ghana
PERENNIAL Real Estate Holdings is venturing into the African continent through a joint venture (JV) with Shangri-La Asia to develop a 49,874-square-metre site in Ghana.
It said on Friday it will buy a 55 per cent stake in the site from Shangri-La for US$15.2 million.
The site, which is in the airport district of Ghana's capital and largest city Accra, will be developed into a "prime integrated mixed-use development", Perennial said.
The total cost of the development, including the land, is estimated to be more than US$250 million. The development, expected to be completed in 2019, will comprise a hotel, residential towers, an office tower, a shopping mall and serviced apartments.
The project will be funded through the sale of the residential and office components to minimise the total capital outlay and optimise cash flow, according to Perennial. Part of the development cost will be funded by internal funds and external borrowings.
"The joint venture in Ghana marks Perennial's maiden foray into the African continent, where Perennial has the benefit of leveraging on Wilmar's extensive knowledge, network and resources in selective high-growth emerging markets in Africa to achieve first-mover advantage," said Perennial CEO Pua Seck Guan.
Wilmar International is one of Perennial's largest sponsors with an effective interest in the latter of 11.8 per cent as at July 16, 2015.
On Thursday, Perennial's counter closed 2.5 Singapore cents lower at S$1.005.