Perennial Estate to acquire stake in Capitol Singapore for $528m

Capitol Entities will become its wholly-owned subsidiary when the sale of shares is completed.

Perennial Real Estate Holdings will buy Chesham Properties’ stake in Capitol Singapore worth approximately $528m.

“Pursuant to the Settlement Agreement and the Chesham Notice, both Chesham and the Perennial Entities shall, within 2 business days, execute a sale and purchase agreement for the sale of shares in the Capitol Entities from Chesham to the Perennial Entities,” said Perennial in its filing to the Singapore Exchange.

The consideration, which was based on a property price of $1.02m, will be paid in cash through Perennial’s internal resources and borrowings. In line with this, the completion of share sales shall occur within eight weeks of the data of the sale and purchase agreement.

Upon completion, Perennial will discharge Chesham’s loans to the Capitol Entities worth $368m, and all interest accrued on the said loans, as well as make ancillary payments to Patina Hotels & Resorts worth $3m.

In addition, Capitol Entities will become a wholly-owned subsidiary of Perennial upon the completion of share sales.