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 section. Yeow Seng previously pointed out he felt it was better to bid for Shenton House through his private vehicle due to the dimension of the subject and the limited time established by the sales committee on the collective sale.

“Yeow Seng has actually stressed to IOIPG that Shenton 101 is all set and able to move on with the development preparation of Shenton House within the conditions of the tender and that 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 prolonging the proposal to IOIPG is to help fix or attend to the possible conflict of interest circumstance,” IOIPG’s declaring read.

KUALA LUMPUR (June 25): IOI Properties Group Bhd (KL: IOIPG) has actually received a plan from its group ceo cum major shareowner Lee Yeow Seng to participate in the development of Shenton House, a business estate situated in Singapore that his special vehicle has appropriately tendered for, for S$ 538 million (RM1.9 billion).

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

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

The present additional current funding obligation– excluding the property development cost, which is to be settled– is S$ 476 million, which includes land betterment rates, lease top-up premium, and operation expenditures, it stated.

According to a stock exchange declaration, Yeow Seng has suggested that IOIPG obtain all or section of his exclusive vehicle, Shenton 101 Pte Ltd, which is intending to redevelop Shenton House, works for which are set up to commence rearmost of 2025.

Yeow Seng and his sibling Datuk Lee Yeow Chor are primary shareholders of IOIPG through their substantial shareholdings in Vertical Capacity Sdn Bhd, which holds 65.67% in IOIPG.

This is to address and reduce the potential conflict of interest that will arise due to his job in the redevelopment of Shenton House with Shenton 101, in which he is the single investor. The purpose of the proposition is to line up the involvements of IOIPG thereupon of Shenton 101, which will hold the redeveloped property as investment upon its effective redevelopment.

“Further, according to the Singapore’s central business district reward scheme, Shenton House is qualified for a 25% bonus gross floor area which can be redeveloped right into a mixed-use commercial with residential project or a hotel at the GPR of 14. Because of this, Shenton House is allocated for redevelopment right into a fresh 99-year leasehold commercial development,” IOIPG claimed.

IOIPG said the proposal stands for four months, which may be extended by another two months if a written request is gotten from IOIPG.

Grand Dunman floor plan

According to IOIPG, Yeow Seng has suggested the purchase consideration be identified based upon the actual price of investment incurred by himself and Shenton 101, multiplied by the equity interest in Shenton 101 to be acquired by IOIPG, or an equivalent registration worth for the subscription of brand-new shares in Shenton 101.

“The good faith purpose of Yeow Seng is not to make a personal gain arising from the proposal. Therefore, the factor to consider is to involve the first expense of investment decision of equity in Shenton 101 and the cost acquired by Shenton 101 for the procurement of Shenton House and any kind of advance costs had by Shenton 101 such as experts’ rates and expenses and tender, application and approval costs as well as cost of finance,” IOIPG included.

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