Hersing Corporation on Thursday annnounced it has entered a non-binding memorandum of understanding with a leading global real estate fund which it did not name for a proposed joint venture relating to to Hersing's self-storage business.
Hersing, through its wholly-owned subsidiary Storhub Self Storage Pte Ltd, manages and operates self-storage businesses in five locations across Singapore. The company intends to expand its self-storage business throughout the island and in Asia-Pacific. 'The proposed joint venture will allow the company to leverage on the financial expertise, network and other resources of the real estate fund for this intended expansion,' Hersing said in a statement.Under the terms of the MOU, Storhub will transfer four properties - 25A Changi South Street 1, 743 Lorong 5 Toa Payoh, 615 Lorong 4 Toa Payoh, and 15 Changi South Street 1 - to four Singapore-incorporated asset holding companies, which in turn will be beneficially owned by an entity to be 80 per cent held by the global real estate fund and 20 per cent by Hersing.
The real estate fund will also buy from Hersing a 20 per cent stake in a company that will be set up to provide property management and asset management services for the asset holding companies.
Hersing said that the deal will allow the company to realise capital gains which in turn will enhance shareholders' value.
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