SINGAPORE (May 6): On April 22, Singapore Press Holdings announced it had entered into an agreement to sell its stake in the retail podium and four office strata units (Chinatown Point mall) at the Chinatown Point integrated development in Singapore’s Chinatown. The media behemoth, which is transforming into a property investment company, owns the stake through its 30.68%-held associate, Perennial Chinatown Point (PCP) and various other entities.
SPH says it will book a gain of $10 million. The company had raised its stake by another 20% in November 2016 from the 7.35% acquired in 2010, and a further 3.3% in November 2017 to 30.68% currently.
“Based on the group’s annual report ended August 2018, dividend received by PCP amounted to $2.2 million on a carrying value of $51.6 million,” UOB Kay Hian says in an update. That implies a yield of 4%. “This is in contrast to newer and higher-yielding assets in the student accommodation space (of up to 6%).”
