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May 09, 2019
The Star : Amcorp Properties forms joint venture with S’pore firm
 
Amcorp Properties forms joint venture with S’pore firm

PETALING JAYA: Amcorp Properties Bhd’s unit is forming a joint-venture (JV) company with SRIF Pte Ltd and an endowment fund deemed to be established under Nanyang Technological University in a strategic move to expand its footprint into Singapore.

In its filing with Bursa Malaysia, Amcorp said its wholly owned subsidiary – Amprop Synergy – had entered into a JV agreement in respect of a JV company known as SRIF Amcorp Pte Ltd to acquire an interest in a commercial property in Tampines, Singapore.

Upon execution of the JV agreement, Amprop Synergy will subscribe to a 40% equity interest in SRIF Amcorp, while SRIF Amcorp will subscribe to a 35% equity interest and the endowment fund will subscribe to the remainder 25% equity interest in the JV company.

SRIF Amcorp owns 50% in Ascend TGrande Pte Ltd (AscendTG), a JV company jointly-owned with Metrobilt Construction Pte Ltd.

“A JV agreement was also entered between SRIF Amcorp and Metrobilt to regulate the terms and conditions of their JV in AscendTG, for the purpose of acquiring the entire equity interest in T-Grande Investment Holding Pte Ltd, which holds the entire equity interest in T-Grande Property Holding Pte Ltd,” it said.

T-Grande Property owns the said commercial property in Singapore.

Amcorp said the property is a leasehold building, comprising two blocks of eight-storey premium Grade A office towers linked by a double-volume entrance lobby with retail and F&B outlets on the ground floor and a basement carpark. It has 287,651 sq ft of lettable space, with an occupancy rate of 91% as at Feb 28, 2019. The property had a tenure of 99 years leasehold from Aug 20, 2007, with a net book value of S$366mil (RM1.12bil) as at Dec 31, 2018.

“The JV is part of a strategic move by Amprop to expand its footprint into Singapore,” Amcorp said.

“The JV provides Amprop Group with an opportunity to build its presence and investments in Singapore’s limited Grade A decentralised office market, particularly on the eastern side,” it noted.

The JV is in line with Amprop’s investment strategy to focus on properties in key developed global cities and partnerships with reputable property developers for its overseas projects, it added.

According to Amcorp, the JV is not expected to have a material effect on the earnings of Amprop Group in the current financial year ending March 31, 2020, but is expected to contribute positively in the following years.

 
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