See Hup Seng proposes joint venture with Ho Lee group for exec condo project

It seeks 30% stake in Seranggoon EC while the remaining 70% to be held by Ho Lee.

See Hup Seng Limited said that it intends to enter into a joint venture with Ho Lee Group Pte Ltd (“Ho Lee”), Evia Real Estate Management Pte Ltd (“Evia”) and CNH Investment Pte. Ltd (“CNH”) (the “Proposed Joint Venture”), to benefit from the healthy demand for executive condominiums (“EC”) in Singapore.

Under the Proposed Joint Venture, See Hup Seng’s wholly-owned subsidiary SHS Capital Pte Ltd (“SHS Capital”) shall subscribe for a 30% stake in Serangoon EC Pte Ltd (“Serangoon EC”) for consideration of S$1.5 million.

The remaining 70% stake in Serangoon EC shall be held by Ho Lee, Evia and CNH.

Serangoon EC was incorporated by Ho Lee and Evia for the development of an EC on a land parcel at Upper Serangoon View / Upper Serangoon Road (the “Project”). The Housing & Development Board (HDB) awarded the tender for this ninety-nine year lease land parcel to Ho Lee and Evia in March 2012.

"Our joint venture partners have an excellent track record in Singapore’s property development scene, particularly for residential projects. The EC project that we will be jointly developing with Ho Lee, Evia and CNH has an attractive location as it is along the coastline of Sungei Serangoon reservoir and near Punggol Park," Said Executive Chairman of See Hup Seng, Mr Thomas Lim.

"With continuing healthy demand for well-located executive condominium projects, we believe the Proposed Joint Venture is a compelling business opportunity for the Group. By taking a 30% stake in the Project and partnering the right people in the field, we will be able to gain a deeper insight into property development that will broaden the Group’s knowledge base. Moreover, the Project can potentially bring additional income and cash flow to the Group, but without excessive risk exposure based on the present outlook for the EC market,” he adds.

The Proposed Joint Venture is subject to approval of See Hup Seng’s shareholders in an extraordinary general meeting to be held in due course.