Shipping and property conglomerate Shun Tak Holdings Ltd. has announced that it has won the bid to acquire a freehold land parcel in Singapore for a consideration of SG$145 million (HK$826.5 million/US$102.9 million), according to its filing with the Hong Kong Stock Exchange on Monday. The land parcel, located at No. 9 Cuscaden Road in the central business district of Singapore, occupies approximately 2,391 square metres and currently accommodates a double-storey bungalow that did not generate any income in the past two years, the company revealed in a recent filing on May 12. According to Shun Tak, the property is destined for hotel purposes under the current zoning plan of the Singapore authorities. But it also noted that the plot could be converted into residential use if Singaporean authorities give the greenlight on the modification to the project. The bid for the land parcel was placed by Shun Tak’s indirect wholly-owned subsidiary Shun Tak Real Estate (Singapore) Pte. Limited. According to the May 12 filing, the preliminary independent valuation of the property for hotel use was SG$131 million as at May 5 this year. ‘The Company considers the acquisition beneficial to the development of the hospitality business of the Group and potentially beneficial to the property development business of the Group,’ it wrote in a previous filing. ‘The acquisition will expand the footprint of the Group’s business to a gateway city in the region. It is also a rare opportunity for the Group to enhance its asset portfolio under freehold title in the prime area of a well-developed country,’ the company added.
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