TOP Global, the Catalist-listed property company that was part of a consortium that recently succeeded in its $250 million bid for an iconic site in Singapore, has revved up its interest in China, with its sights set on a plot of land on an island governed by Shanghai.
The land, which has a gross floor area of about 808,000 square metres, can be developed for residential, retail and commercial use, with development cost expected at about $900 million.
Top Global – led by Sukmawati Widjaja – will acquire a 51 per cent stake in Longrunn International for about $1.5 million under a memorandum of understanding signed yesterday. ‘Additional capital requirements shall be subject to plans to be jointly agreed,’ said Top Global.
Longrunn International, which is run by a Chinese investor, will co-manage the planning and development of the piece of land on Fisherman Pier, Changxing Island. It takes about 30 minutes by car to access Changxing Island from the city centre of Shanghai.
Top Global is now looking at various options of developing the land, including bringing in investors, chief operating officer of Top Global Jennifer Chang said, adding that the company has not committed the amount that it would set aside to develop the land.
The company has also not decided if the property development would be more focused on residential or retail and commercial purposes, she told BT.
The stock of Top Global was in active play once again yesterday, closing unchanged at 1.5 cents with 124.3 million shares changing hands for the day.
It was in the limelight when the company, through a consortium, won the tender for the iconic site that includes Capitol Theatre, Capitol Building and Stamford House.
With its partners – Pontiac Land’s Kwee Liong Seen and Pua Seck Guan, founder of Perennial Real Estate Group and former chief executive of CapitaMall Trust Management – Top Global plans to turn the historic site into a hotel, theatre, retail and residential development.
It has also plans to lease and acquire hotels near transportation points such as airports and railway stations in China, as well as set up and manage an investment fund to acquire these hotels.
Over in Singapore, it has also set up a real estate agency, with the aim of gathering data and research on property deals, executive director Hano Maeloa told BT.
Source: Business Times © Singapore Press Holdings Ltd.