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Perennial Real Estate and Pontiac Land reach settlement on Capitol Singapore

THE deadlock in the fate of Capitol Singapore is finally coming to an end after its major shareholders, Perennial Real Estate Holdings Limited and Pontiac Land, came to a settlement agreement.

This provides a mechanism for either Perennial or Pontiac Land to purchase all of the others' shares in the iconic heritage property.

Perennial said on Wednesday that a settlement agreement was inked between its wholly owned subsidiaries, Perennial (Capitol) Pte Ltd and New Capitol Pte Ltd, Perennial (Singapore) Retail Management, Pontiac Land's affiliate Chesham Properties, and Patina Hotels & Resorts Pte Ltd.

The sale and purchase of shares is expected to be completed within 19 weeks of the date of the settlement agreement.

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Acrimonious disagreements between the co-owners of Capitol Singapore - an integrated development located at the junction of Stamford Road and North Bridge Road - over some key issues of the project had earlier resulted in Perennial seeking court action to wind up three associated companies that are equally owned by Perennial (through Perennial Capitol and New Capitol) and Pontiac Land (through Chesham Properties).

But Perennial lost the case and made its appeal. The Court of Appeal dismissed Perennial's appeal against the Hight Court's decision last November.