(10-10-2014, 07:29 AM)greengiraffe Wrote: [ -> ]http://www.businesstimes.com.sg/companie...perty-deal
Global Yellow Pages inks first property deal
By
Andrea Sohsandrea@sph.com.sg@AndreaSohBT
9 Oct5:50 AM
Singapore
GLOBAL Yellow Pages, in its first-ever deal in the real estate sector, is planning to buy a shopping mall and its accompanying land in New Zealand.
This, however, will be done in a roundabout way, through an intermediate firm controlled by Global Yellow Pages' CEO Stanley
Global Yellow Pages inks first property deal
The Business Times - October 9, 2014
By: Andrea Soh
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Global Yellow Pages inks first property deal
Singapore
GLOBAL Yellow Pages, in its first-ever deal in the real estate sector, is planning to buy a shopping mall and its accompanying land in New Zealand.
This, however, will be done in a roundabout way, through an intermediate firm controlled by Global Yellow Pages' CEO Stanley Tan and director Pang Yoke Min.
The original owners of the freehold shopping mall - Ladstone Pakuranga Limited and Ladstone Pakuranga Management Limited - had first sold the property to Pakuranga Plaza Limited (PPL) on Sept 9 for NZ$96 million (S$95.8 million).
The mall, which is located in the centre of Pakuranga in Auckland, occupies 39,209 square metres, and has retail and office space with a gross lettable area of 29,541 square metres that is occupied by about 100 tenants, including major department stores and supermarkets.
Under the terms of the deal, PPL had to pay 5 per cent of this amount as a deposit by Oct 8, and another 5 per cent when it obtained approval under the Overseas Investment Act of New Zealand. The remainder was to be paid on the settlement date stipulated in the agreement.
Global Yellow Pages had wanted to buy PPL shares directly from its previous shareholder, but this acquisition would have been conditional on the approval of its shareholders in a general meeting. Ladstone Pakuranga Limited and Ladstone Pakuranga Management Limited had not wanted any condition allowing PPL to defer completion of the acquisition until the firm had obtained all regulatory approvals.
Therefore, another intermediate firm Pakuranga Plaza Holdings - set up in New Zealand for this acquisition and controlled equally by Mr Tan and Mr Pang - on Tuesday bought over all the PPL shares.
Global Yellow Pages will be taking over all of PPL shares for NZ$38.4 million, which it intends to finance through a rights issue completed in June and internal funds; PPL intends to borrow S$57.7 million to finance its own purchase of the property.
The NZ$38.4 million that Global Yellow Pages will pay to Pakuranga Plaza Holdings will comprise: a deposit of NZ$9.6 million when PPL's deal with the mall's original owners is declared unconditional; a deposit of NZ$28.8 million a day before the settlement date of that deal, and NZ$1 when Global Yellow Pages has obtained consent from its shareholders in an extraordinary general meeting and regulators.
If approval from shareholders or regulators is not granted, Pakuranga Plaza Holdings, with Mr Tan and Mr Pang as the guarantors, will together repay the first two deposits to Global Yellow Pages within 40 days.
Global Yellow Pages said that this acquisition will enable the group to diversify into real estate, in which it sees potential for long-term growth and in which both its chairman Mah Bow Tan and Mr Tan have significant experience.
According to a valuation report by property consultancy JLL dated Feb 6 this year, with the purchase price of S$96.2 million and an occupancy rate of about 97 per cent, the net rental yield of the property is about 8.1 per cent. "The acquisition is therefore income accretive in nature, and will generate profits that may be used to fund the working capital of the group," Global Yellow Pages said in the announcement.
The firm, which has also identified food and beverage as another sector to diversify into, had also last month completed the purchase of the intellectual property rights held by Wendy's Supa Sundaes and Innovation Ice Cream for A$10 million (S$11.7 million).
The counter, which has fallen 46.4 per cent so far this year, dipped 0.1 Singapore cent to close at 4.3 Singapore cents on Wednesday.