City Developments Limited (CDL), on March 30, announced that King’s Tanglin Shopping has agreed to dispose of all 85 strata lots (including two car parks) that it owns in Tanglin Shopping Centre to Hillthorpe Investments.
The disposal will be done in a collective sale by way of a public tender.
The sale is subject to conditions being satisfied, including an order obtained from the strata titles board for the sale of all units in Tanglin Shopping Centre.
King’s Tanglin Shopping is an indirect wholly-owned subsidiary of Millennium & Copthorne Hotels.
The total strata area of the units by King’s Tanglin Shopping totals 21,229 sqm or 60.2% of the total strata area. The units also represent 34.64% of the total share value of Tanglin Shopping Centre.
Tanglin Shopping Centre is a freehold office-cum-shopping complex at Tanglin Road.
According to CDL, the sale will realise a significant gain for the group. The completion date is pegged to fall in FY2022 or FY2023.
The sale of the units is also said to allow the group to recycle and reallocate its capital according to its overall strategy to divest select assets at a premium to net book value and, or valuation. The move is also said to complement CDL’s execution of its review of the Millennium & Copthorne Hotels portfolio.
Tanglin Shopping Centre, which made its fourth en bloc bid in December 2021, found a buyer on Feb 23.
The eventual buyer, Singapore-based privately held real estate investor Pacific Eagle Real Estate, made an offer of $868 million, 4.8% higher than the asking price of $828 million.
The purchase price translates to $2,769 psf per plot ratio (ppr), assuming full commercial usage, according to Savills Singapore who brokered the deal.
Shares in CDL closed 3 cents higher or 0.38% up at $7.88 on March 29.
