Perennial Holdings locked in legal spat over Capitol Singapore

It wants to wind up three companies.

Mainboard-listed Perennial Real Estate Holdings has filed winding-up applications for three of its associated companies.

The three companies together hold the assets of Capitol Singapore, an integrated development located at the junction of Stamford Road and North Bridge Road.

PREHL owns a 50% stake in each of the three companies, while Chesham Properties holds the remaining 50% stake.

PREHL said that it has been unable to agree with Chesham on a number of key issues relating to the Capitol Project, without specifying what these issues were.

"As a result, in the last few months, the Capitol Project has become increasingly deadlocked at both the board and shareholder levels," PREHL said.

"The prevailing state of affairs is not conducive to the business interests of the Capitol Project, the Capitol Entities or their respective shareholders. It is therefore necessary for the shareholders to disengage from the joint enterprise, such that the Capitol Project is ultimately fully controlled by either shareholder, or by a third party buyer," PREHL noted.

PREHL said that the winding-up proceedings will not have a tangible impact on its results for the current financial year.