The Straits Times | April 20, 2013
Engineering and real estate group TEE International has been given the green light to list its real estate arm on the Singapore Exchange mainboard.
The company said in an SGX filing yesterday that the bourse operator has given its unit TEE Land a letter of eligibility to list. The group develops properties in Singapore and Thailand.
Most of its local residential projects are in the East Coast area and range from one-bedroom apartments costing about $550,000 to cluster terraces that cost over $3 million.
Its projects here include The Thomson Duplex, which received its temporary occupation permit (TOP) in April 2010, and Cantiz @ Rambai, which received its TOP in November 2010 and is in Joo Chiat.
TEE Land is helmed by Mr Jonathan Phua, 38, the nephew of TEE International chief executive Phua Chian Kin, 53. Mr Jonathan Phua oversaw 19 projects in Singapore and across South-east Asia as of last month.
TEE Land's stake in these residential, commercial and industrial properties has a gross development value of about $684 million.
TEE Land said in a statement that it will remain a unit of TEE International, but it expects to issue new TEE Land shares.
The issuance of this unspecified number of new shares will result in TEE International's shareholding falling by at least 20 per cent after the proposed listing, TEE Land said.
This means that TEE International needs to seek shareholder approval for the spin-off in an extraordinary general meeting.
The listing is contingent on TEE Land raising at least $20 million in gross proceeds from an initial public offering (IPO), a minimum market capitalisation of $150 million as at listing and a minimum issue price of 50 cents.
TEE International said in February that it would inject $16 million of its property assets into TEE Land as part of its plan to spin off TEE Land and list it on the SGX by next month.
It also said in February that certain pre-IPO investors have agreed to invest $4 million in TEE Land when the restructuring is completed.
Last month, TEE International announced it had set up two units under TEE Land, called TEE Industrial and TEE Hospitality.
OCBC Research said in a note that the choice of names suggests that TEE Land is preparing to expand its property business further into the industrial and hospitality services segments.
TEE International's board said in a statement yesterday that there was no assurance that the proposed listing would materialise in due course.
TEE International's share price closed 1.5 cents higher at 37 cents yesterday.
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