FEC International, a Hong Kong listed company has acquired Royal Oak Residence at a price of S$93 million after entertaining offers for two years. FEC International has also been active in pursuing other opportunities in the prime district.
Advance Delight Global Limited, a wholly owned subsidiary of FEC has entered an agreement to purchase the entire capital (issued/paid up) of another company Highest Reach Investments Limited, who own the 34 unit freehold site at 21 Anderson Road, according to a statement made by the company on Wednesday.
FEC will be paying around S$93 million and assuming the existing bank loans of Highest Reach under a credit facility of nearly S$103 million.
Blackstone, the private equity giant is the seller acting through Amber Investment Holding which had bought the property during the final months of 2014 for about S$164 million.
According to the News, Blackstone had intentions of divesting the site comprising GFA of 87,000 sq ft which is close to Raffles Girls’ School and Orchard road ever since 2016.
FEC’s managing director Chris Hoong stated that his company intended to hold this site as an investment before chalking out potential redevelopment.
He also added that the present acquisition was an attractive opportunity for his group for replenishing its Singapore land bank and generating cash flow before planning redevelopment and adding to its development basket after a successful launch of Artra in 2017.
He also stated that FEC would continue with its strategy on regionalization and further expand its residential pipeline focused on long-term benefits to the company’s shareholders.
In May last, a consortium comprised of FEC’s unit FEC Properties had clinched a site measuring 5,772.5 sq m at Cuscaden Road through a residential Government Land Sales for developing a luxury residential project, at a cost of S$410 million.
Earlier in the year, the company had also collaborated with Koh Brothers Group, a locally listed company for acquiring and developing Hollandia and The Estoril en bloc sale sites at S$183.38 m and S$223.94 m respectively.