Singapore, 20 October 2006 -- Singapore Telecommunications Limited (Singtel) today announced that it has accepted the offer made by Kajima-Lehman (Robinson) Development Pte Ltd (“Kajima-Lehman”), a joint venture company between Kajima Overseas Asia Pte Ltd and Lehman Brothers, to purchase the property at No. 71 Robinson Road for a total cash price of S$163.4 million.
Ten per cent – or S$16.34 million - of the purchase price will be paid to Singtel within seven days of Singtel’s acceptance of Kajima-Lehman’s offer. The balance 90 per cent will be paid on completion of the sale, which is expected to be in December 2006.
The property, formerly known as Crosby House, is a seven-storey commercial building that sits on a land area of 2,279 square metres at the junction of Robinson Road and McCallum Street. It is currently being leased mainly to third parties. The property is not required for Singtel’s operations and its sale will have no impact on the company’s other operations.
Singtel had appointed Credo Real Estate (S) Pte Ltd to market the property via a public tender. The tender sale was launched on 24 August 2006 and closed on 28 September 2006. In July 2006, an independent professional valuer Chesterton International valued the site, on an open market value basis, at S$69 million for commercial development.
Singtel’s net gain on disposal of this property is expected to be S$143.54 million. The net book value of the site is about S$19.65 million.
Ms Chua Sock Koong, Singtel’s Deputy Group Chief Executive Officer, said: “This sale will allow us to free up cash resources and re-deploy them in our core telecommunication business and new investments.”