Saturday, May 26, 2012

GPH to buy Fragrance real estate unit for $25m from parent

Business Times: Sat, May 26
NEWLY listed Global Premium Hotels Ltd (GPH) is planning to spend $25.1 million from its initial public offering (IPO) proceeds and working capital to acquire Fragrance Heritage Pte Ltd (FHPL) from its parent, property company Fragrance Group Ltd.

FHPL is a special-purpose company whose sole real estate asset comprises a freehold 2,254.2 square metre development site on Tyrwhitt Road, on which GPH intends to develop a hotel.

The purchase consideration is equivalent to FHPL's net asset value of $992,382 as at March 31, and a sum of $24.1 million as the valuation surplus.

According to two independent valuers appointed by FHPL, as at May 24, the estimated open market value of the Tyrwhitt Road property is $78 million.

GPH has entered into a share-transfer agreement to purchase the entire issued and paid-up share capital of FHPL, comprising 1 million ordinary shares, which will be satisfied in cash.

An initial amount of $10 million will be paid on the execution of the share-transfer agreement, while the remaining balance of $15.1 million will be fulfilled upon the agreement's completion.

All told, the $25.1 million price tag for FHPL represents approximately 8.5 per cent of the GPH group's latest unaudited consolidated adjusted net tangible assets (NTA) of $296.8 million...
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Team Marshe
Martin Koh/ Sherry Tang
9383-3992/ 9844-4400

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