Friday, September 23, 2011

Orchard Parade enters into JV to develop land parcel at Robinson Road/Cecil Street

Orchard Parade Holdings, a publicly-listed business unit of the Far East Organisation group, says wholly-owned subsidiary, Pearlvine Pte Ltd (PPL), has won a tender by URA for a land parcel at Robinson Road/Cecil Street zoned for commercial purposes jointly with Boo Han Holdings (BHH). The total tender price for the land is $311.8 million.

PPL and BHH will be entering into a joint venture to acquire and develop the land. But BHH is wholly-owned by the estate of Mr Ng Teng Fong and Mdm Tan Kim Choo. The controlling shareholder of BHH is also Far East Organisation.

As such, the proposed joint venture is regarded as an interested person transaction under SGX’s listing rulesl.

Orchard Parade’s capital contribution in the JV, through PPL, will be 20%, while that of BHH will be 80%. The company’s share of the capital contribution towards the Proposed Joint Venture will be funded by internal sources and bank borrowings.

Orchard Parade says the joint venture will allow the company to collaborate with a partner with an excellent track record and strong financials and would give the company an opportunity to participate in bigger development projects which it would not be able to undertake on its own.

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