Property developers CapitaLand and Hotel Properties Limited (HPL) have secured financing facilities worth nearly S$2 billion for their collective purchase of Farrer Court estate in prime district 10.
CapitaLand and HPL, along with their partners, had bought Farrer Court for S$1.34 billion last June. The financing facilities will be used to refinance the acquisition costs of the purchase, as well as to fund the construction and development of the new project.
CapitaLand, which owns a 35-percent stake in the joint venture, intends to redevelop the site into a 36-storey condominium project with some 1,500 high-end units.
Other than HPL, the other partners in the JV are Wachovia Development Corp and a Morgan Stanley real estate fund.
Farrer Court currently comprises 618 units and has a remaining lease of 69 years.
According to estimates, the total acquisition cost works out to about S$783 per sq ft per plot ratio.
DBS Bank, UOB Asia, Standard Chartered, OCBC Bank and The Royal Bank of Scotland are the lead arrangers and bookrunners for the secured term loan, revolving credit and bank guarantee facilities.
In its stock exchange filing, CapitaLand said United Overseas Bank will act as facility agent and security agent for the facilities.
These will be secured by a mortgage over the Farrer Court property and a debenture over the assets of the joint venture.- CNA/so
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