Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Mingtiandi 2022 Event Calendar
    • APAC Residential Forum 2022
    • Asia Logistics Forum 2022
    • Asian Capital in Australia Forum 2022
    • Asia REIT Forum 2022
    • APAC Data Centre Forum 2022
    • Singapore Focus Forum 2022
    • Office Strategies Forum 2022
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

Keppel Buying Singapore Press Holdings’ Real Estate Business in $2.5B Deal

2021/08/02 by Christopher Caillavet Leave a Comment

the paragon sg

SPH’s properties include the Paragon mall in Singapore

Keppel Corporation has offered to privatise Singapore Press Holdings’ non-media business, which consists primarily of real estate assets, in a cash-and-scrip deal valuing the Straits Times publisher at S$3.4 billion ($2.5 billion).

Under an agreement between the two firms announced Monday, Keppel will pay S$1.08 billion in cash and S$1.16 billion in Keppel REIT units to SPH shareholders, who will also receive S$1.16 billion in SPH REIT units from the media group.

The buyout proposal comes three months after SPH announced plans to spin off its media operations into a not-for-profit unit and five months after the state-controlled conglomerate undertook a strategic review of its business after years of shifting from its newspaper roots in favour of profits from a real estate portfolio in Singapore, and new property investments overseas.

SPH also controls the manager of SGX-listed SPH REIT, a real estate investment trust which owns retail and residential properties in Singapore and Australia, as well as student accommodation assets in the UK and elder care properties in Singapore and Japan.

Property Haul

“This is a rare opportunity to acquire SPH’s non-media portfolio, which fits very well with Keppel’s business and growth strategy,” said Keppel chief executive Loh Chin Hua.

sph-keppel-Loh-Chin-Hua

Keppel boss Loh Chin Hua is about to expand his portfolio

The state-run conglomerate, which grew from its roots as Singapore’s largest shipbuilder into a multi-branched conglomerate, is offering the equivalent of S$2.099 per SPH share, representing an 11.6 percent premium to the last traded price of S$1.88 per share on 30 July and a 21.4 percent premium to the three-month volume-weighted average price of S$1.729 per share.

The deal is contingent on divestment of SPH’s loss-making media business as revealed in May. Both SGX-listed firms must secure shareholder and regulatory approval for the transaction.

Loh pronounced Keppel “uniquely positioned” to enhance and unlock the value of SPH’s portfolio, with the company directly owning the Seletar Mall and Woodleigh Residences in Singapore, as well as student accommodation in the UK and Germany.

Through SPH REIT, it controls the Paragon, Clementi Mall, Rail Mall and other shopping centres in Singapore, as well as the Figtree Shopping Centre in Sydney and the Westfield Marion mall in South Australia.

Office forum 2022_250 ad

Keppel expects the SPH properties to further enhance the asset management platform under Keppel Capital, improving the diversity of its asset classes and increasing recurring fee-based and investment income.

Keppel’s acquisition will give the group a strategic stake in SPH REIT and full ownership of the trust’s manager. Post-transaction, Keppel will hold a roughly 20 percent stake in both SPH REIT and Keppel REIT.

Firms in Flux

The proposed takeover comes as Keppel and SPH carry out transformation plans marking a shift in their strategic direction.

Keppel last year announced a management shake-up — including the promotion of Keppel Land chief operating officer Louis Lim to CEO of the development flagship and Keppel DC REIT head of investment Anthea Lee to chief executive of the data centre trust’s manager — as the group sought to unify operations that span real estate, infrastructure, offshore marine and fund management.

Keppel Bay Tower (1)

Keppel headquarters in Keppel Bay Tower has been busier than usual this year

The new leadership is charged with implementing the Vision 2030 plan, with a focus on key sectors like energy and environment, urban development, connectivity and asset management.

“The proposed acquisition of SPH is very much in line with Keppel’s Vision 2030, where we seek to grow Keppel’s business as a provider of solutions for sustainable urbanisation through organic and inorganic options,” Loh said.

Media Malaise

SPH’s own strategic review determined the need to restructure its media business — which includes the Straits Times, the Business Times and various newspapers published in Chinese, Malay and Tamil — and fulfil the potential of its real estate arm, culminating in the choice of Keppel as suitor.

Logistics forum 2022 Web banner

“We took the first step with the media restructuring to ensure a sustainable future for the media business, while removing its losses from SPH,” said SPH chief executive Ng Yat Chung. “The next step was a thorough process to unlock and maximise value for all shareholders for the remaining company.”

Keppel and SPH previously worked together on the M1 and Genting Lane data centre joint ventures, which will come under Keppel’s ownership upon completion of the acquisition. The two firms are also shareholders in the manager of SGX-listed Prime US REIT.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Finance Tagged With: cm-sea, Featured, Keppel Corporation, Singapore, SPH, SPH REIT, weekly-sp

https://player.vimeo.com/video/658500990?h=acd5304b2d

Leave a Reply

Your email address will not be published. Required fields are marked *

Asia Proptech Report 2022 (Sustainability)

Get Mingtiandi Delivered

MTD TV

mtd tv aussie panel thumbnail

SC Capital, JLL, RCA, Perri Predict Office Upswing as Australia Opens Up: MTD TV

MTD TV Emerging classes in residential screenshot

Student Housing, Senior Living Offer Amped Yields for Multi-Family Investors: MTD TV

More MTD TV Videos

Latest Stories

kenny lam manulife

Link REIT Hiring Outgoing Manulife IM Exec Kenny Lam as Co-CIO

kuok khoon hua

China Resources Logistics Adds Fifth HK Industrial Asset in Two Years

Amelie-Delaunay

GLP Leads Real Estate Fund Managers in APAC, Bumps CapitaLand From Global Top 10

Sponsored Features

Rosanna Tang Colliers

Office Upgrades Jump After Omicron Slowed Hong Kong Market in Q1 Sponsored Feature

Bernie Devine

Is Your Building a Device? Sponsored Feature

Vietnam’s BW Acquires First Assets in Long An Province as Growth Continues Sponsored Feature

More Sponsored Features>>

MTD-QR-Code-320

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2022 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Membership
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2022 China Advertising Media Ltd (Samoa). All rights reserved.