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Tuan Sing unit sets up S$500m medium-term note programme

SUPERLUCK Properties, a wholly-owned subsidiary of mainboard-listed property developer Tuan Sing Holdings, has established a S$500 million secured multicurrency medium-term note (MTN) programme.

This is the group’s second MTN programme, after Tuan Sing’s existing S$900 million multicurrency programme launched in 2013.

DBS Bank and United Overseas Bank are the appointed arrangers and dealers, according to Tuan Sing’s bourse filing on Sunday night.

The S$500 million programme is unconditionally and irrevocably guaranteed by Tuan Sing.

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Superluck may issue notes denominated in Singapore dollars or any other currency agreed between Superluck and the relevant dealer(s), in one or more tranches and on a syndicated or non-syndicated basis.

The notes will be secured by, among other things, a mortgage over two properties owned by Superluck at 18 Robinson Road and the strata units #11-01 and #11-02 of Far East Finance Building at 14 Robinson Road.

18 Robinson is the group’s flagship building which obtained its Temporary Occupation Permit (TOP) in January 2019. The new 28-storey, freehold Grade-A office and retail tower has a diversified tenant base with a weighted average lease expiry of 3.9 years, Tuan Sing said on Sunday.

18 Robinson and the Far East Finance strata units were valued at S$681.5 million and S$10 million respectively as at Oct 3, by Savills Valuation and Professional Services (S). Together, they have a total net lettable area (NLA) of around 195,000 square feet.

Net proceeds from the notes will be used to refinance the existing borrowings of Superluck, as well as finance or refinance the acquisition, development, renovation and/or refurbishment of 18 Robinson and the strata units.

William Liem, chief executive officer of Tuan Sing, said the S$500 million MTN programme will improve the group’s debt maturity profile.

“It is a good opportunity for us to capitalise on the low interest rate environment for fundraising to support the continued development of our properties,” said Mr Liem.

Shares of Tuan Sing ended flat at S$0.33 on Friday.