Shun Tak Holdings Ltd, the Hong Kong conglomerate whose interests include VIP gaming in Macau, has expanded its Asian property portfolio by acquiring a 70 percent stake in a premium commercial development in Singapore.
In an announcement, the company said that the complex – located at 111 Somerset Road – was, “currently undergoing a substantial asset enhancement program with anticipated completion in late 2018/early 2019, after which it will comprise a total net strata area of approximately 572,000 square feet, including 13 stories of strata office units, 2 stories of strata medical suites and office units and 2 levels of retail podium.”
The cost of the development is said to be HK$1.915 billion (US$154 million) with 61 percent of the equity to be settled by cash. Perennial Singapore Investment Holdings will take hold of the remaining 30 percent stake in the property.
“The Group believes the Singapore office market will remain healthy in the medium to long run backed by sound government policy and solid underlying fundamentals,” Tak Chun announced.
“The decision is also consistent with its strategy to expand its real estate portfolio into international gateway cities. By leveraging the extensive property development and management expertise within the joint venture partnership, the Group expects to unlock significant value for this centrally located mixed-use property following the asset enhancement program, and generate optimal performance and long term return from this investment.”