Morgan Stanley Private Equity Asia to take controlling stake in APAC Realty

Singapore Housing and Development Board (HDB) apartments. Photo by Anatoliy Shostak on UnsplashSingapore Housing and Development Board (HDB) apartments. Photo by Anatoliy Shostak on Unsplash

Morgan Stanley Private Equity Asia (MSPEA) has agreed to acquire 59.8 percent of real estate services company APAC Realty for around S$129.5 million, or S$0.61 a share, the offeror said in a statement filed to SGX Monday.

The stake is currently held by Asia Pacific Realty Holdings (APRH), which is controlled by the Northstar Group, a Singapore-based private equity firm, the filing said.

Mandatory general offer

As a result of the offer, MSPEA is required to make a mandatory general offer (MGO) to acquire the remainder of APAC Realty. The offer is S$0.57 a share in cash, and it is unconditional, the filing said.

Shares of APAC Realty last traded at S$0.805 on Monday.

Both JC Lim Long Weng Eugene, a key executive officer of APAC Realty, and Poh Chee Yong, chief financial officer, have stated they won’t tender their aggregate 9 percent stake in the property services company, the filing said.

APAC Realty, which is listed on Singapore Exchange, hold the exclusive ERA regional master franchise rights for 17 Asia-Pacific countries; its Singapore subsidiary, ERA Realty Network, is one of the city-state’s largest real estate agencies, the filing said.

Andrew Hawkyard, co-chief investment officer of MSPEA, and managing director of Morgan Stanley, noted APAC Realty is a real estate brokerage with regional brand recognition.

“MSPEA will help to further build on this solid foundation and support APAC Realty’s growth by leveraging our global network and extensive experience of growing businesses across Asia. We believe our partnership with APAC Realty and its management team will bring significant benefits to all stakeholders of the company, including customers, developers, advisors, employees and shareholders,” Hawkyard said in the statement.

APAC Realty said it would appoint an independent financial adviser to advise the independent directors on the MGO to acquire the rest of the company.

MSPEA is Morgan Stanley’s private equity arm in Asia.