Somerset Holdings Gets Go-Ahead From Shareholders For Junction 8 Acquisition
Somerset Holdings’ shareholders have given the company the go-ahead to acquire full ownership of Junction 8, the shopping centre cum office complex at Bishan, at an Extraordinary General Meeting today (Dec 13).
Somerset Holdings will purchase a 60 per cent stake in Ventura Development Pte Ltd, which owns Junction 8, at $114,699,556. Junction 8, the underlying property in Ventura Development, is valued at $238 million.
Ventura Development is a joint venture between Somerset Holdings, which owns 40 per cent, and SembCorp Industries, which owns 60 per cent. The transaction will give Somerset Holdings full ownership of the mall.
Somerset Holdings’ chief executive officer, Mr Kee Teck Koon, said: "Junction 8 will be our flagship for suburban malls and serve as a model for our expansion overseas. Suburban shopping is an exciting growth area in the region’s retail scene, and we plan to be a major player at the forefront of this transformation.
"Together with our joint venture partner, we have developed Junction 8 into a popular shopping centre with high traffic and 100 per cent retail occupancy. We will replicate the success factors of this project as we secure more retail management opportunities in the Asia Pacific."
Mr Kee added that Somerset International’s retail operations will specialise in three types of assets. Firstly, the company will manage suburban and regional malls ranging from 5,000 to 100,000 square metres, such as the 58,000 square metre TaiMall mega shopping centre in Taipei.
Secondly, it will run specialty and thematic centres targeted at particular niches, such as the very successful Funan The IT Mall, and H2O Zone in Orchard Road.
Thirdly, it will run community-based shopping centres which are part of the larger mixed developments it manages.
Somerset Holdings is one of the largest Singapore-based retail property owners / managers in the Asia Pacific region, with about 300,000 square metres of retail space.
The Junction 8 purchase was subject to the approval of Somerset Holdings and SembCorp Industries’ shareholders. Both Somerset Holdings and SembCorp Industries are subsidiaries of Temasek Holdings (Private) Limited.
Junction 8 is strategically linked to the Bishan MRT station, bus interchange and town centre. Completed in 1993, the development comprises a two-storey basement, four-storey retail podium building and six-storey office tower. Eighty per cent of its lettable space is for retail, and its anchor tenants include Daimaru supermarket and department store, SAFE Superstore and the Golden Village Multiplex Cinema.
Somerset Holdings is a leading owner and manager of serviced residences and retail properties in the Asia Pacific region.
The company is the hospitality and retail subsidiary of Pidemco Land, and is publicly listed in Singapore. Somerset Holdings owns or manages 3,200 serviced residence units and about 300,000 square metres of retail space in the Asia Pacific.
FACT SHEET - JUNCTION 8
|Owner||:||Ventura Development Pte Ltd|
|Location||:||9 Bishan Place
|Description||:||Junction 8 is located in Bishan Town Centre, between the Bishan MRT station and bus interchange. The building comprises a four-storey retail podium, six-storey office tower, and two basement levels with 391 carpark lots.|
|Tenure||:||99-year lease commencing September 1, 1991|
|:||33, 984 square metres|
|Total Lettable Area||:||22, 397 square metres|
|Lettable Retail Area||:||18, 076 square metres|
|Lettable Office Area||:||4, 321 square metres|
|Major Retail Tenants||:||Daimaru Singapore Pte Ltd
SAFE Enterprises Pte Ltd
Golden Village Multiplex Pte Ltd
Topwin Foods Pte Ltd
|Major Office Tenants||:||SembCorp Industries Ltd
Management Development Institute of Singapore (MDIS)
December 13, 1999
Ida Lim, Vice President
Investor Relations & Corporate Communications
Hp: 9-628-8339 Tel: 65867-230 Fax: 62272-220
Tay Cheng Cheng, Assistant Manager
Tel: 65867-231 Pgr: 9-266-0127 Fax: 62272-220
Issued by: Somerset Holdings Limited