SingHaiyi unit to buy Jalan Lempeng property for S$841m

PROPERTY firm SingHaiyi Group on Thursday said that it will purchase a property along Jalan Lempeng for S$841 million, after the tender submitted by its joint-venture (JV) firm was accepted by the property owners.

The property is known as Park West and located at 2-20 Jalan Lempeng. It is to be acquired by Sing-Haiyi Gold, a 50-50 joint venture between wholly owned subsidiary SingHaiyi Land and Haiyi Wealth, an entity controlled by Gordon Tang and Celine Tang. The husband and wife duo are in turn the controlling shareholders and directors of the company through Haiyi Holdings.

The property comprises a leasehold estate of 99 years commencing on March 8, 1982 with a land area of about 58,867 sq m with a plot ratio of 2.1.

The JV firm intends to apply to the Singapore Land Authority for the grant of a fresh 99-year lease for the property and to lift certain title restrictions.

The deal comes as the property developer in December moved to raise some S$143 million for property investments through a rights issue.

It proposed a renounceable non-underwritten rights issue of up to about 1.44 billion new shares at S$0.10 each, to be issued on the basis of one rights share for every two existing shares to shareholders.

Majority shareholder Haiyi Holdings, which has a 56.17 per cent stake in SingHaiyi, committed to subscribe for not only its pro-rata entitlement of 806 million rights shares, but also to mop up more available rights shares.

Shares of SingHaiyi closed on Thursday at S$0.115, down 0.1 Singapore cent.