Shun Tak Holdings buys top stake in TripleOne Somerset

Hong Kong’s Shun Tak Holdings has bought a 70 per cent stake in TripleOne Somerset for S$350 million (US$247.7 million) from a consortium led by Perennial Real Estate Holdings.

A high-rise commercial building and shopping mall in Orchard Road, TripleOne is Shun Tak’s first significant commercial investment in Singapore. It has 5600 sqm of retail space and a 460 sqm outdoor refreshment area.

Perennial, which will receive about $101 million for a 20.2 per cent interest, will retain a 30 per cent share in the office/retail development. It says this will provide it with income stability and allow it to benefit from the strata sales and enhancement works.

The company expects to register a pre-tax gain of about $34.3 million from its divestment, it says in a filing with the Singapore Exchange, and will use its share of the proceeds to fund investments.

Three companies are fully exiting from their stakes in TripleOne. SingHaiyi Group is selling its 20 per cent stake for about $100 million, Boustead Projects is divesting its 5.5 per cent holding for about $27.5 million while the BreadTalk Group is selling its 5.3 per cent interest for $26.5 million.

An aggregate 10 per cent stake will be sold by Shun Fung Holdings, ROOI Holdings and Grandma’s Holdings, which are entities held by Ronald Ooi and the family office of Gloria Lee.

Unified Elite, a company connected to Shun Tak, has entered into a separate agreement to fully divest its 9 per cent stake to to Shun Tak.

In December 2013, Perennial syndicated a consortium of investors to acquire TripleOne for $970 million.
Shun Tak is Perennial’s partner for the Beijing Tongzhou and Zhuhai Hengqin integrated developments in China.
A $120 million enhancement program is underway at TripleOne to augment the retail offerings, incorporate medical suites and spruce up the office lobby and common areas.

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