Singapore Business Review
COMMERCIAL PROPERTY | Staff Reporter, Singapore
Published: 10 APRIL 2013
For a price tag of US$266.73m.
In a release, Forterra Real Estate Pte. Ltd, as the manager of Forterra Trust announced that a conditional share purchase agreement has been entered into for the sale of Central Plaza for US$266.73 million (equivalent to RMB1.67 billion1or S$333.47 million2, realising an increase in the net asset value per unit of nine cents to S$4.53 per unit for the Trust.
The expected net cash proceeds of US$127.34 million underpin the execution of the Trust’s stated strategy of providing all necessary resources, including financial, to ensure the successful completion of The HQ, Forterra’s landmark mixed-use office and retail development in Shanghai.
Accordingly the Trustee-Manager also reiterates its earlier commitment that no further acquisitions will be made until The HQ is completed, rental revenues are stabilised and liquidity is normalised.
The gross sale proceeds of US$266.73 million will be utilised to repay the equivalent of approximately US$120.0 million in debt representing approximately 17% of the loan portfolio and will also reduce the Trust’s annual interest expense by approximately 15%.
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Property Network Pte Ltd (L3007960A)