Perennial Real Estate Holdings Ltd. is entering into a roughly S$129.6 million deal with Chesham Properties Pte. Ltd. to take full control of the nearly S$1.03 billion Capitol Singapore integrated development.
The company said it received a March 9 notice in which Chesam Properties said it will sell its shares in the entities that control the mixed-use project — Capitol Investment Holdings Pte. Ltd., Capitol Retail Management Pte. Ltd. and Capitol Hotel Management Pte. Ltd. — to Perennial (Capitol) Pte. Ltd. and New Capitol Pte. Ltd.
Upon the deal's completion, the two units of Perennial Real Estate will also repay the three Capitol entities' collective debt to Chesham Properties, which amounts to approximately S$368.6 million. The pair is also obligated to make ancillary payments of S$3 million to Patina Hotels & Resorts Pte. Ltd.
In a filing with the Singapore stock exchange, Perennial Real Estate said it will pay the all-cash transaction using a combination of internal resources and debt.
Perennial Real Estate has a 50% interest in the complex that features retail, theater, hotel and residential components.
As of March 9, US$1 was equivalent to S$1.32.
