Sing Holdings Sells EastGate Units For $63m

Source : The Straits Times, Oct 12, 2007

A DECISION to focus on the booming residential property market has seen Sing Holdings sell off 48 commercial units in its EastGate building for $63 million.





















NEW PRIORITIES: Sing Holdings has sold its remaining units in EastGate along East Coast Road so that it can focus on residential property development instead. -- PHOTO: SING HOLDINGS

The 10-storey EastGate, developed by Sing Holdings, received temporary occupation permit (TOP) status in 1998 and is located along East Coast Road and near Marine Parade Central.

Of its 52 units, four were sold before TOP. Sing Holdings said yesterday that it had decided to sell off its remaining units to focus on residential property.

Managing director Lee Sze Hao said in a statement: 'The divestment of EastGate is in tandem with the company's current business model of focusing on residential property development.

'With the appreciation in values of commercial space, we believe that it is now an opportune time to unlock the value of EastGate.'

The units are being sold to Develica Asia Pacific, a wholly owned unit of Develica Asia Pacific Management, which invests in regional commercial real estate.

Develica chief executive officer Chris Brown said: 'This is an excellent acquisition as it allows us to tap into the decentralisation of office operations out of the central business district due to the rise in rentals there.'

The sale price works out to about $1,059 per sq ft based on a net saleable area of 59,491 sq ft.

Sing Holdings will reap a net gain of some $15.9 million from the sale, which is expected to completed on Dec 13.

It intends to use the proceeds to pursue opportunities to expand its land bank for residential property development projects. The sale was brokered by Savills Singapore.