SINGAPORE (Sept 2): Top Global, the property developer and hospitality and facility manager, will acquire 23 freehold commercial strata-titled lots with 43 property addresses in Thong Teck Building at 15 Scotts Road.

The total purchase consideration of $170 million will be funded fully in cash, through a combination of bank financing and internal cash resources.

The properties comprise four retail and 39 office units in Thong Teck Building – which was built in mid 1970s and upgraded in 2014. The property is also located on the fringe of the Orchard Road shopping, entertainment and hotel belt.

The properties have a net lettable area of approximately 57,000 sf and collectively represent some 54% of the Management Corporation Strata Title (MCST) share value as at end July.

The aggregate book value of the properties as at end December 2018 was $122 million and according to the valuation report by Savills Valuation and Professional Services, the aggregate market value as at end July was $180 million.

Top Global noted that the properties are valued at $10 million in excess of the total consideration amount, and the difference between the aggregate book value and net tangible assets of the companies is $0.6 million, representing “an opportunity for the group to acquire valuable assets at attractive prices”.

In addition, the group says that the acquisition provided potential for the group to increase rental yield, as the properties’ current rental yield is low compared to the rental yield of other properties within the vicinity.

As at 1.05pm, shares in Top Global are trading flat at 19 cents.

Top Global to acquire 43 units in Thong Teck Building for $170 mil

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Top Global to acquire 43 units in Thong Teck Building for $170 mil

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