IOI Properties receives proposal from CEO to jointly develop Shenton House in Singapore

According to IOIPG, Yeow Seng has recommended the acquisition consideration be established based upon the real cost of investment incurred by himself and Shenton 101, increased by the equity interest in Shenton 101 to be acquired by IOIPG, or an equal registration value for the membership of new shares in Shenton 101.

Yeow Seng and his brother Datuk Lee Yeow Chor are major investors of IOIPG via their significant shareholdings in Vertical Capacity Sdn Bhd, which takes 65.67% in IOIPG.

At market close on Tuesday, IOI Properties’ shares dropped 4 sen or 1.75% to RM2.25, giving the company a value of RM12.39 billion.

IOIPG claimed the proposition is valid for four months, which might be extended by one more 2 months if a written demand is gotten from IOIPG.

The existing extra current capital commitment– excluding the property development cost, which is to be finalised– is S$ 476 million, which includes land betterment fee, rent top-up costs, and transaction expenditures, it said.

“The good faith purpose of Yeow Seng is not to make a private gain occurring from the proposal. As such, the consideration is to involve the first cost of investment decision of equity in Shenton 101 and the cost accumulated by Shenton 101 for the acquisition of Shenton House and any type of advance costs had by Shenton 101 including specialists’ fees and expenses and tender, application and approval prices in addition to price of finance,” IOIPG included.

Cape Royale showflat location

This is to deal with and minimize the potential dispute of interest that will arise as a result of his part in the redevelopment of Shenton House through Shenton 101, through which he is the single shareowner. The purpose of the proposal is to coordinate the involvements of IOIPG thereupon of Shenton 101, that will hold the redeveloped real property as investment upon its successful redevelopment.

Shenton House covers 3,377 square metres and is designated for retail usage with a gross plot ratio (GPR) of 11.2. The premises has a 44-year land contract, with the possible to be prolonged to a fresh 99-year lease.

“Yeow Seng has actually stressed to IOIPG that Shenton 101 is all set and capable to move on with the property development organizing of Shenton House following the terms of the tender and that Shenton 101 is well on the way to established funding to allow it to proceed with the redevelopment and also the purpose that Yeow Seng is prolonging the proposition to IOIPG is to aid settle or deal with the probable conflict of interest circumstance,” IOIPG’s declaring read.

Shenton 101 was the single prospective buyer of Shenton House, that is located in Singapore’s main business section. Yeow Seng formerly said he felt it was better to bid for Shenton House using his private vehicle because of the size of the subject and the tight timing established by the sales council on the collective sale.

“Further, according to the Singapore’s main business district incentive scheme, Shenton House is qualified for a 25% bonus gross flooring space which can be redeveloped into a mixed-use commercial with non commercial project or a hotel at the GPR of 14. Thus, Shenton House is earmarked for redevelopment into a fresh 99-year leasehold business enhancement,” IOIPG claimed.

KUALA LUMPUR (June 25): IOI Properties Group Bhd (KL: IOIPG) has obtained a recommendation from its group ceo cum major shareowner Lee Yeow Seng to take part in the property development of Shenton House, a business property situated in Singapore that his private vehicle has effectively tendered for, for S$ 538 million (RM1.9 billion).

According to a stock exchange declaration, Yeow Seng has actually suggested that IOIPG get all or portion of his exclusive vehicle, Shenton 101 Pte Ltd, that is intending to redevelop Shenton House, works for which are scheduled to begin by the end of 2025.