Chip Eng Seng Corporation (CES), along with SingHaiyi Group and a company associated with Hong Kong-listed Chuan Holdings, has won a joint tender for the enbloc acquisition of Maxwell House for $276.8 million.
The tender was jointly submitted by CES’ subsidiary CEL Development (CEL), SingHaiyi’s subsidiary SingHaiyi Investments (SHIPL) and Chuan Investments (CIPL).
Billionaire couple Gordon and Celine Tang are significant shareholders in both CES and SingHaiyi, currently holding 36% and 65% of the respective company shares. Celine Tang is also the non-executive chairman of CES and managing director of SingHaiyi.
CIPL is a newly incorporated company owned by Chuan Holdings’ subsidiary Longlands Holding, along with Tng Kay Lim, managing director of Singapore construction group Kay Lim Holdings, and entrepreneur Yang Tse Pin. The three hold 33% each in CIPL.
Located along Maxwell Road, Maxwell House is presently a 13-storey commercial development comprising 145 strata units, with a 99-year lease that commenced from June 2, 1969. The property has a land area of 3,883.3 square metres and commercial zoning with a plot ratio of 4.3.
The companies plan to redevelop Maxwell House into a mixed-use development with a gross plot ratio of at least 5.6 and gross floor area (GFA) of at least 21,746.48 square metres. The new property will encompass both commercial and residential components, with the commercial component comprising up to 20% of the total GFA.
They will seek approval from the Singapore Land Authority to issue a fresh 99 year lease for the property.
Pursuant to the tender win, the companies have entered into a binding memorandum of understanding (MOU), with plans to form a joint venture company to undertake the acquisition and development of the property.
CEL will have 40% interest in the joint venture, with SHIPL and CIPL holding 30% each.
At at 9.38am, shares in CES and Singhaiyi are trading at 44.5 cents and 6.9 cents respectively.
