IOI Properties receives proposal from CEO to jointly develop Shenton House in Singapore
Shenton 101 was the single bidder of Shenton House, that is located in Singapore’s central business center. Yeow Seng formerly stated he felt it was better suited to bid for Shenton House through his own vehicle because of the dimension of the subject and the tight time established by the sales board on the collective sale.
“Further, according to the Singapore’s central business district benefit scheme, Shenton House is eligible for a 25% bonus gross floor space that can be redeveloped right into a mixed-use commercial with non commercial development or a hotel at the GPR of 14. Therefore, Shenton House is earmarked for redevelopment right into a fresh 99-year leasehold commercial enhancement,” IOIPG said.
“Yeow Seng has actually emphasised to IOIPG that Shenton 101 is all set and capable to proceed with the development organizing of Shenton House following the conditions of the tender which Shenton 101 is well on the way to implemented funding to allow it to advance with the redevelopment and that the purpose that Yeow Seng is prolonging the contract to IOIPG is to help settle or resolve the potential problem of interest situation,” IOIPG’s filing read.
At market close on Tuesday, IOI Properties’ shares lost 4 sen or 1.75% to RM2.25, giving the business a valuation of RM12.39 billion.
According to a stock exchange filing, Yeow Seng has proposed that IOIPG obtain all or section of his own vehicle, Shenton 101 Pte Ltd, which is intending to redevelop Shenton House, works for which are planned to commence by the end of 2025.
IOIPG said the plan is valid for 4 months, and that might be lengthened by one more two months if a written application is gotten from IOIPG.
This is to address and alleviate the potential conflict of interest that are going to develop as a result of his role in the redevelopment of Shenton House with Shenton 101, in which he is the sole shareholder. The objective of the proposition is to arrange the interests of IOIPG thereupon of Shenton 101, that will hold the redeveloped real property as investment upon its effective redevelopment.
The existing extra present resources commitment– leaving out the property development cost, that is to be finalised– is S$ 476 million, that includes land betterment fee, rent top-up costs, and transaction expenses, it claimed.
KUALA LUMPUR (June 25): IOI Properties Group Bhd (KL: IOIPG) has obtained a recommendation from its group chief executive officer cum major shareholder Lee Yeow Seng to participate in the development of Shenton House, a commercial property located in Singapore that his special vehicle has successfully tendered for, for S$ 538 million (RM1.9 billion).
Yeow Seng and his sibling Datuk Lee Yeow Chor are significant shareholders of IOIPG with their considerable shareholdings in Vertical Capacity Sdn Bhd, that takes 65.67% in IOIPG.
According to IOIPG, Yeow Seng has proposed the acquisition factor be figured out based on the real cost of assets acquired by himself and Shenton 101, increased by the equity interest in Shenton 101 to be acquired by IOIPG, or an equivalent membership value for the subscription of new shares in Shenton 101.
“The good faith intention of Yeow Seng is not to make a personal gain arising from the proposition. Thus, the consideration is to involve the initial expense of investment of equity in Shenton 101 and the cost incurred by Shenton 101 for the acquisition of Shenton House and any type of upfront charges had by Shenton 101 including professionals’ fees and expenditures and tender, application and authorization costs along with price of finance,” IOIPG included.
Shenton House covers 3,377 square metres and is assigned for business usage with a gross plot ratio (GPR) of 11.2. The property has a 44-year land contract, with the possible to be stretched to a fresh 99-year lease.
