09 May 2019
The Edge : Amprop in JV to buy an office building in Singapore
Amprop in JV to buy an office building in Singapore

KUALA LUMPUR: Amcorp Properties Bhd (Amprop) is acquiring an effective stake of 20% in two premium Grade A office towers in Tampines Grande, Singapore, which involves a funding commitment of S$24 million (RM73.2 million).

In a filing with Bursa Malaysia, it said wholly-owned subsidiary Amprop Synergy Pte Ltd yesterday signed a joint-venture (JV) agreement to subscribe to 40% equity interest in SRIF Amcorp Pte Ltd (JV Company) for S$40.

In turn, JV Company owns a 50% stake in Ascend TGrande Pte Ltd, which is in the process of buying the commercial blocks.

Under the JV agreement, Amprop and its partners — SRIF Pte Ltd and an endowment fund deemed to be established under Nanyang Technological University — agree to fund the JV company, whether by equity or loans, proportionately according to their shareholding percentage for the purchase and other costs of the property.

Meanwhile, JV company has inked an agreement with Ascend TGrande's other 50% owner, Metrobilt Construction Pte Ltd, for the purpose of acquiring the entire equity interest in T-Grande Investment Holding Pte Ltd, the ultimate owner of the two towers.

The office building, with 287,651 square foot of lettable space, has a net book value of about RM1.12 billion. Its two blocks are linked by a double-volume entrance lobby with food and beverage outlets on the ground floor and a basement carpark.

Amprop said the joint venture is part of a strategic move to expand its footprint into Singapore, (which is ranked the fifth highest Asia-Pacific city in terms of rental value) and focus on properties in key developed global cities - Bernama