BBR: Wisteria Mall to be sold for around S$208M

Singapore 10-dollar billsSingapore 10-dollar bills

BBR Holdings’ 25.05 percent associated company, Northernone Development, has entered a deal to sell Northern Retail, which owns the Wisteria Mall, to Flaming Power for around S$208 million, according to a filing to SGX Monday. 

The Wisteria Mall, located at 598 Yishun Road in Singapore, near the Khatib MRT station, is the commercial component of the mixed-use commercial and residential development called The Wisteria, the filing said. The property is a 99-year leasehold mall, with a mix of retail, supermarket, food court and other food and beverage outlets, the filing said. 

BBR Holdings, a construction and specialised engineering group, said Northern Retail’s business of leasing commercial property isn’t within its core business. In addition, Northern Retail’s other shareholders were interested in disposing of the property, BBR Holdings said. 

“The proposed disposal is in the interests of the company as it will allow the group to recycle the capital arising from the net proceeds of the proposed disposal for its working capital purposes and/or to pursue other business opportunities,” BBR Holdings said.

BBR Holdings’ share of the net proceeds is estimated at around S$10 million, the filing said.

The purchase price for Northern Retail and a shareholders loan was based on an agreed property value of S$205 million, and an estimated net asset value of Northern Retail and its bank facilities, BBR said. The amount may be adjusted closer to the completion date, the filing said.

The shareholders loan is around S$33.28 million, and it will be assigned to Flaming Power, and the bank facilities will be repaid, the filing said. 

The desktop valuation of the property by an independent firm put the value of the property at between S$217 million to S$230.7 million as of end-June 2021, the filing said.

Northern Retail is 50.1 percent owned by Northern Development, which is 50 percent owned by BBR Property, which in turn is a wholly owned subsidiary of BBR Holdings, the filing said, noting that gives BBR Holdings an effective 25.05 percent stake in Northern Retail. 

Flaming Power is a British Virgin Islands-incorporated company unrelated to BBR Holdings, the filing said.

The deal is expected to be completed on 28 February, the filing said.