Tuan Sing inks sale and purchase agreement for Robinson Point divestment

TUAN Sing Holdings is another step closer to completing its proposed divestment of 39 Robinson Road Pte Ltd, which owns freehold office tower Robinson Point, at an agreed property value of S$500 million.

The property developer on Tuesday said it has signed the sale and purchase agreement (SPA) for the deal with the buyer, One South Bay Group, and also received a second deposit of S$45 million.

Tuan Sing had received the initial deposit of S$5 million when the binding option agreement was signed in August.

The balance of about S$450 million will be paid on completion of the transaction.

The agreed property value of S$500 million is subject to adjustments based on, among other things, the net asset value of the target company as at the date of completion of the deal.

Conditions precedent include the receipt of all consents and waivers necessary under Tuan Sing's S$900 million multicurrency medium-term note programme in relation to the proposed disposal.

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The deal is classified as a major transaction and is thus subject to Tuan Sing shareholders' approval at an extraordinary general meeting, unless waived or exempted by the Singapore Exchange.

A circular containing further details on the proposed disposal will be despatched to shareholders in due course, if required.

The proposed deal is expected to be completed by end-June 2021, although Tuan Sing noted there is no certainty or assurance that it will be completed.

Robinson Point is a 21-storey office building located at 39 Robinson Road in the heart of Singapore's central business district.

The buyer, One South Bay, is an investment holding company incorporated in the British Virgin Islands, according to Tuan Sing's Aug 7 filing. It is an independent third party that's not related to Tuan Sing, the latter's subsidiaries, directors or controlling shareholders.

Tuan Sing's chief executive William Liem said on Tuesday that the proposed sale will be one of the largest deals in the commercial real estate space this year.

When completed, the divestment of Robinson Point will strengthen the group's balance sheet and position the group to make new strategic acquisitions and investments in Singapore as well as across the region whenever opportunities arise, Mr Liem added.

The property has a gross floor area of some 15,700 square metres (168,993 square feet). Its ground floor is occupied by retail units, and car-park bays are on levels three to five. The remaining floors comprise office units.

Asset enhancement works to the main lobby, car-park lobby and loading bay were completed in 2015.

In August, Tuan Sing said that the proposed disposal will allow the company to improve capital allocation and optimise returns for its shareholders, in line with its proactive asset management strategy.

The mainboard-listed firm requested a trading halt last Friday. It lifted the halt at 11.34am on Tuesday. Tuan Sing's shares were flat at 29.5 Singapore cents by the midday break on Tuesday.