Tan Chong International and CDL Aries Reach Agreement for S$126.3 Million Sale of Two Commercial Properties in Upper Bukit Timah
Tan Chong International Limited (“TCIL”) and City Developments Limited (“CDL”) recently entered into an agreement for the sale of two commercial properties located at Upper Bukit Timah in Singapore for a total consideration of S$126.3 million.
The two properties are situated on a freehold land parcel of about 24,819 square metres at Upper Bukit Timah Road. The property comprises two commercial buildings with a total of about 10,707 sqm of gross floor area.
The first property is a five-storey building with a The Myst total of about 4,400 sqm of gross floor area. It is a self-contained commercial building with a basement car park, offices, restaurant and other ancillary facilities. The second property is a three-storey building with a total of about 6,307 sqm of gross floor area and is a self-contained commercial building with offices, restaurants and other ancillary facilities.
The two properties are currently tenanted under a single lease. The tenant is currently occupying the premises as its corporate headquarters and research and development centre. The lease has a remaining term of about three and a half years.
The sale of the two commercial properties is part of TCIL’s on-going strategy to divest non-core assets and to focus on its core automotive business. This transaction is expected to generate a net gain of about S$45 million to TCIL.
The transaction is subject to the fulfilment of certain conditions and the approval of the relevant authorities.
CDL is one of the leading property developers in Singapore. It has a diversified portfolio of investment properties and residential, office, retail and hospitality assets spread across 30 cities in 15 countries.
The acquisition of the two commercial properties is in line with CDL’s strategy of acquiring and developing assets that are strategically located and offer attractive yield. The two properties are located in a well-established residential neighbourhood and are close to amenities such as shopping malls and transportation nodes.
The acquisition of the two commercial properties will add to CDL’s portfolio of Singapore assets and strengthen its presence in the Singapore property market.
This transaction is a testament of the attractiveness of Singapore’s real estate market and the confidence of investors in the city-state’s long-term prospects. It is also a reflection of TCIL’s commitment to divest non-core assets and focus on its core automotive business.
The transaction is expected to be completed within the next few months, subject to the fulfilment of certain conditions and the approval of the relevant authorities.
Tan Chong International Ltd (TCIL) and CDL Aries Pte Ltd (CDL Aries) have recently announced that they have reached an agreement to effect the sale of two commercial properties in Upper Bukit Timah for a total consideration of S$126.3 million. This agreement marks the latest in a string of large-scale property transactions in Singapore in recent months.
The two properties in question comprise a four-storey office building, known as the Delta House, and a five-storey pre-school and childcare centre, known as the Timezone Building. The Delta House is located at 190 Upper Bukit Timah Road, while the Timezone Building is located at 190A Upper Bukit Timah Road. The Delta House is currently leased to a single tenant and has a remaining lease period of approximately three years.
The sale of these two properties is part of Tan Chong International Ltd’s ongoing strategy to divest non-core assets and to focus on their core automotive business. It will also help to reduce the company’s total debt by approximately S$60 million.
Commenting on the agreement, TCIL’s Chief Financial Officer, Mr. William Chow said, “This is an important milestone for TCIL as we continue to strengthen our balance sheet and focus on our core automotive business. We are pleased to have reached an agreement with CDL Aries for the sale of these two properties and believe that this sale will be beneficial to both parties.”
CDL Aries is a joint venture between City Developments Limited (CDL) and Aries Capital, a real estate fund managed by Aries Group. They are currently in the process of acquiring the two commercial properties in Upper Bukit Timah as part of a larger portfolio of office, retail and industrial properties in Singapore.
The two properties are ideally located in a prime area of Singapore and are close to amenities such as shopping malls and MRT stations. The Delta House is located within the Bukit Panjang and Bukit Batok Planning Areas, while the Timezone Building is located within the Bukit Batok Planning Area.
CDL Aries plans to leverage on the strategic location of the two properties to attract and retain tenants. They intend to carry out extensive renovations and upgrade works to both the Delta House and Timezone Building in order to provide modern and attractive work and learning environments for their tenants.
In a statement, CDL Aries’ Chief Executive Officer, Mr. Richard Tan said, “We are delighted to have reached an agreement with TCIL for the purchase of these two commercial properties in Upper Bukit Timah. We believe that the strategic location and potential for renovations and upgrades will make these two properties attractive to tenants. We are confident that this acquisition will be beneficial to our business and our investors.”
The sale of these two commercial properties in Upper Bukit Timah marks yet another milestone in Singapore’s property market. It is a testament to the strength of the market and the continued demand for quality properties in the city. With the help of this agreement, TCIL will be able to focus on its core automotive business, while CDL Aries will be able to further expand its portfolio of office, retail and industrial properties in Singapore.