IOI Properties receives proposal from CEO to jointly develop Shenton House in Singapore

Shenton 101 was the single bidder of Shenton House, that lies in Singapore’s major business district. Yeow Seng formerly pointed out he felt it was better suited to bid for Shenton House by means of his exclusive vehicle due to the dimension of the subject and the tight timing set by the sales committee on the collective sale.

“The good faith intent of Yeow Seng is not to make a personal gain emerging from the proposal. Thus, the consideration is to feature the first expense of investment decision of equity in Shenton 101 and the price incurred by Shenton 101 for the procurement of Shenton House and any type of upfront costs had by Shenton 101 such as consultants’ fees and costs and tender, application and authorization costs in addition to cost of finance,” IOIPG included.

Shenton House covers 3,377 square metres and is designated for retail use with a gross plot ratio (GPR) of 11.2. The property has a 44-year land contract, with the possible to be lengthened to a fresh 99-year lease.

IOIPG stated the proposition is valid for 4 months, and that may be lengthened by another 2 months if a written demand is gotten from IOIPG.

“Yeow Seng has actually emphasised to IOIPG that Shenton 101 is all ready and capable to go ahead with the improvement preparation of Shenton House following the conditions of the tender which Shenton 101 is well on the way to put in place funding to enable it to advance with the redevelopment and also the factor that Yeow Seng is extending the proposal to IOIPG is to aid fix or attend to the potential problem of interest circumstance,” IOIPG’s filing read.

According to IOIPG, Yeow Seng has actually recommended the purchase factor be established based on the real expense of assets accumulated by himself and Shenton 101, increased by the equity interest in Shenton 101 to be obtained by IOIPG, or a comparable subscription value for the membership of brand-new stakes in Shenton 101.

According to a stock exchange submission, Yeow Seng has proposed that IOIPG obtain all or portion of his own vehicle, Shenton 101 Pte Ltd, that is preparing to redevelop Shenton House, works for which are planned to commence rearmost of 2025.

At market close on Tuesday, IOI Properties’ shares lost four sen or 1.75% to RM2.25, bringing the company a valuation of RM12.39 billion.

KUALA LUMPUR (June 25): IOI Properties Group Bhd (KL: IOIPG) has received a recommendation from its group president cum major investor Lee Yeow Seng to take part in the development of Shenton House, a business estate located in Singapore that his special vehicle has effectively tendered for, for S$ 538 million (RM1.9 billion).

The Arden floor plan

“Further, according to the Singapore’s central business district benefit system, Shenton House is eligible for a 25% reward gross floor space which can be redeveloped right into a mixed-use commercial with non commercial development or a hotel at the GPR of 14. As such, Shenton House is earmarked for redevelopment right into a fresh 99-year leasehold business enhancement,” IOIPG said.

The current added existing capital obligation– omitting the property development cost, that is to be finalised– is S$ 476 million, that includes land betterment rates, rent top-up costs, and transaction costs, it claimed.

This is to address and minimize the potential dispute of interest that are going to develop due to his part in the redevelopment of Shenton House via Shenton 101, through which he is the sole shareowner. The intent of the proposal is to arrange the interests of IOIPG with that of Shenton 101, which will keep the redeveloped property as investment upon its successful redevelopment.

Yeow Seng and his sibling Datuk Lee Yeow Chor are primary investors of IOIPG via their significant shareholdings in Vertical Capacity Sdn Bhd, that takes 65.67% in IOIPG.

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