SPH sells 5.29% stake in AXA Tower

Investors entered into a share purchase agreement with Alibaba Singapore.

Singapore Press Holdings (SPH) will divest its 5.29% stake in AXA Tower for approximately $33.2m through its wholly-owned subsidiary PE One, according to an announcement.

SPH, Perennial Real Estate Holdings, and a consortium of investors have entered into a share purchase agreement with Alibaba Group subsidiary, Alibaba Singapore, for the sale of 50% stake in AXA Tower and the transfer of 50% of an outstanding shareholders’ loan.

The sale is expected to be completed around June when certain conditions are satisfied.

Concurrently, all the investors have incorporated a new entity and transferred the remaining 50% stake in AXA Tower and the remaining 50% of the outstanding loan to the new entity.

Upon completion of the sale, the new entity and Alibaba Singapore will enter into a joint venture agreement for the redevelopment of AXA Tower.

PE One will reinvest $5.9m for an interest of 2% in the new entity, which represents a 1% effective interest in the redevelopment of AXA Tower.