Asset Acquisitions and Disposals::Proposed Acquisition of Property and Subsidiary

Issuer & Securities

Issuer/ Manager
SINARMAS LAND LIMITED
Securities
SINARMAS LAND LIMITED - SG1E97853881 - A26
Stapled Security
No

Announcement Details

Announcement Title
Asset Acquisitions and Disposals
Date &Time of Broadcast
12-May-2022 12:20:19
Status
New
Announcement Sub Title
Proposed Acquisition of Property and Subsidiary
Announcement Reference
SG220512OTHRKPVC
Submitted By (Co./ Ind. Name)
Kimberley Lye Chor Mei
Designation
Company Secretary
Description (Please provide a detailed description of the event in the box below)
The Board of Directors of Sinarmas Land Limited ("SML" or the "Company" and together with its subsidiaries, the "Group") wishes to announce that SML Strand Limited ("SML Strand"), a wholly-owned subsidiary of the Group, has entered into a sale and purchase agreement ("Agreement") with LS London Holdings One Limited (the "Seller"), relating to the purchase by SML Strand and the sale by the Seller of the entire issued share capital of LS City & West End Limited ("Target"), a company incorporated in England and Wales, which owns the freehold property known as 32-50 Strand, London WC2N 5LL (the "Property"), upon the terms and conditions of the Agreement (the "Proposed Acquisition"). The consideration for the Proposed Acquisition is estimated to be GBP195 million (equivalent to approximately SGD334 million*) (the "Consideration"), with completion expected to take place by 30 June 2022.

The Property is a freehold prime commercial building comprising approximately 139,000 sq ft over basement, ground and eight upper floors. It is located at the western end of the Strand and benefits from excellent connectivity next to the Charing Cross station and within a stone's throw from London's Trafalgar Square.

The Consideration, determined on a willing buyer willing seller basis, was based on various factors, including income factors and prices of comparable assets transacted in the city of London. A cash deposit of 5% of the Consideration was paid upon signing the Agreement, with the balance of the Consideration payable on completion.

The Group intends to use internal resources and bank borrowings to finance the Proposed Acquisition.

The Board of Directors of the Company is of the view that the Proposed Acquisition will further strengthen the Group's recurring income with the addition of a prime asset with strong cash flows and augment the Group's investment strategy in Central London.

Following the completion of the Proposed Acquisition, the Target will become a subsidiary of the Group.

By Order of the Board
SINARMAS LAND LIMITED


Robin Ng Cheng Jiet
Director
12 May 2022

*The amount in SGD equivalent using the exchange rate as at 10 May 2022 of GBP1 = SGD1.713.