Tag Archives: Perennial Real Estate

Perennial Real Estate seeks to wind up Capitol entities over deadlock with Pontiac Land

PERENNIAL Real Estate Holdings (PREHL) has filed applications for the Singapore High Court to wind up three associated companies related to its integrated development, Capitol Singapore at City Hall, due to a deadlock with its partner.

The three firms are Capitol Investment Holdings, Capitol Retail Management and Capitol Hotel Management.

The applications were made because “the shareholders and management of the Capitol entities are in deadlock, and that their relationship has been adversely affected such that the shareholders cannot realistically continue to work together constructively,” it said in a filing to the Singapore Exchange.

PREHL said on Thursday that the shareholders were unable to agree on a number of key issues related to the project in the last few months. It did not say what these issues were.

“The prevailing state of affairs is not conducive to the business interests of the Capitol project, the Capitol entities or their respective shareholders. It is therefore necessary for the shareholders to disengage from the joint enterprise, such that the Capitol project is ultimately fully controlled by either shareholder, or by a third party buyer,” PREHL said.

The Capitol entities together hold the assets of Capitol Singapore, an integrated development at the junction of Stamford Road and North Bridge Road.

PREHL owns an effective 50 per cent stake in each of the three Capitol entities. Its chief executive officer is retail mall veteran, Pua Seck Guan.

Chesham Properties holds the remaining 50 per cent. Chesham is a member of the Kwee family’s Pontiac Land Group, a privately-held luxury property developer

All components of the integrated development – retail, theatre, hotel and residences – have received their temporary occupancy permits.

PREHL said the winding up proceedings were not expected to have any material impact on its net tangible assets or earnings per share for the current financial year ending December 31, 2016.

Perennial hints at changes afoot at Capitol Singapore

Some changes could be afoot at Capitol Singapore after it has been hit with a depressed retail environment. Landlord Perennial Real Estate on Friday (Feb 5) said it is looking at ways to help tenants.

CEO of Perennial Real Estate Holdings Pua Seck Guan, said: “The retail sector is not easy now, because a lot of retailers are faced with the problem of labour shortage and also in this volatile market.

“As a landlord, we therefore have to adopt a strategy to find the right tenant and a win-win rental structure, and some of the rentals we may have to get it on a turnover basis rather than insist on a very high base rent.”

The announcement comes as Capitol Singapore integrated development is edging closer to completion. The 157-room The Patina hotel has been completed, although it has not yet opened its doors. Meanwhile, the luxury Eden Residences expects to receive its Temporary Occupation License by end-February. The retail complex has been opening in phases since May 2015.

Concerns about Capitol’s retail tenants aside, Perennial presented a strong report card for the three months to December at a briefing on Friday, with net profit almost doubling up 93 per cent to S$41.1 million.

Property consultant, Chestertons, said Capitol could get a boost when the hotel starts operating. “One potential catalyst that might come out for Capitol’s retail centre would be the opening of Patina Hotel,” said managing director of Chestertons Donald Han.

“The Patina is almost ready to open its doors and it would welcome high-end or business tourists. So effectively, that could be a crowd puller to be able to support some of the high -end offering in Capitol. This year might potentially might see some footfall traffic. I think it might see higher occupancy settling in, as the year moves on. ”

Turning to its other Singapore properties, Perennial said it hopes to start selling office space and medical suites at TripleOne Somerset sometime in the second quarter, and it is awaiting final approval to do the same for AXA Tower.

Perennial’s other properties in Singapore include Chinatown Point and CHIJMES. The Singapore properties account for 21 per cent of the group’s total assets, behind China whichs accounts for around 73 per cent.

Source : Channel NewsAsia – 5 Feb 2016

Perennial gets go-ahead to enhance TripleOne Somerset, AXA Tower

Local property group Perennial Real Estate Holdings said on Tuesday (Aug 4) it has received planning permits for proposed enhancement works at TripleOne Somerset and AXA Tower.

The plans for TripleOne Somerset, a predominantly-office cum retail development off Orchard Road, include increasing the retail area and converting up to 32,000 square feet of gross floor area into medical suites. Perennial also intends sell office space by dividing the area into smaller strata units, commencing with one office tower.

As for AXA Tower in the Shenton Way area, the enhancement involves increasing total net lettable area by 85,000 square feet to about 760,000 sq ft.

The retail area at level 1 and basement 1 will be enlarged, and a new two-storey annex block will be built to house medical suites. The firm also intends to strata sale the office spaces to maximise the value of the prime asset.

Perennial focuses primarily on large scale mixed-use developments in China and Singapore. Besides TripleOne Somerset and AXA Tower, its other Singapore properties include CHIJMES and Capitol Singapore. The group also holds stakes in and manages 112 Katong mall and Chinatown Point mall.

Source : Channel NewsAsia – 4 Aug 2015

Consortium led by Perennial Real Estate Holdings buys AXA Tower

A consortium led by Perennial Real Estate Holdings (PREH) has acquired AXA Tower in downtown Singapore for S$1.17 billion.

The 50-storey office tower with some retail space has a total net rental area of about 674,000sq-ft. This translates the acquisition price to about S$1,735sq-ft.

Located within the Central Business District near Tanjong Pagar MRT station, AXA Tower has a total Gross Floor Area (GFA) of about 1.03 million sq ft. The building currently has an unutilised plot ratio that translates to an additional GFA of over 212,000 sq ft.

In a statement on Friday (Jan 30), PREH said that it will invest about S$117.9 million for a 31.2 per cent equity stake in the building. Another investor, HPRY1 Holdings, a shareholder of PREH, will hold a 10.1 per cent interest in the tower.

PREH’s chief executive officer, Mr Pua Seck Guan, said the “significant investment in the iconic operating asset not only strengthens the Group’s foothold in Singapore, but also provides the Group with an additional stream of stable income.”

He added that “the prime asset presents a unique opportunity to maximise and create value for shareholders through the execution of asset enhancement initiative and potential strata-sale strategy”.

AXA Tower can also house medical suites occupying no more than 32,000sq-ft.

Source : Channel NewsAsia – 30 Jan 2015