Diversified real estate firm SingHaiyi Group said it would buy Park West property at Jalan Lempeng for S$840.9 million after a tender submitted by its joint-venture company was accepted by the owners of the property.
Sing-Haiyi Gold is a 50-50 joint venture between SingHaiyi Land, a subsidiary of the company, and Haiyi Wealth, an entity controlled by Gordon Tang and Celine Tang, who are the controlling shareholders and directors of the company.
The property comprises a leasehold estate of 99 years with a land area of approximately 58,867 square metres with a plot ratio of 2.1, the company said in a regulatory filing late on Thursday evening.
A tender fee of S$1 million had been paid upon the submission of the tender offer by the joint venture.
The JV shall make a payment of 2.5 percent of the purchase price within 10 business days from the acceptance date, the company said.
A further 2.5 percent of the purchase price shall be paid within 10 business days after receiving due consents and the receipt of sale order.
The sale and purchase of the property shall be completed and the balance 95 percent of the purchase price shall be paid within 3 months.
SingHaiyi Group plans to fund the acquisition through internal resources and bank borrowings.
Shares in the company jumped 4.3 percent to S$0.12 on the Singapore Exchange. The stock has gained 27 percent over an year.