Hot on the heels of other recent property dealings here in the prime district, Hong Kong-listed Far East Consortium International (FEC) has just acquired 21 Anderson Royal Oak Residence.
FEC's indirect wholly owned subsidiary, Advance Delight Global, has agreed to purchase all of the issued and paid-up capital of Highest Reach Investments, which owns the freehold, 34-unit site at 21 Anderson Road through its subsidiaries, it said in a statement yesterday.
FEC will pay about $93 million and assume Highest Reach's existing bank loan under a credit facility of approximately $103 million.
The seller is private equity giant Blackstone, acting through Amber Investment Holding (Cayman), which bought the property in late 2014 for approximately $164 million.
It is believed that Blackstone had intended to divest the site, which has a total gross floor area (GFA) of 87,000 sq ft, since 2016.
Mr Chris Hoong, managing director of FEC, said it intends to hold the site as an investment before potentially redeveloping it.
"This acquisition is a good opportunity for the group to replenish the land bank in Singapore, generating recurring cash flow before the redevelopment and adding to its overall development pipeline following the successful launch of Artra in 2017," he added.
The 400-unit Artra is a mixed-use development in Alexandra View that was launched about a year ago.
"FEC will continue to adopt the regionalisation strategy and expand residential pipeline in order to deliver long-term benefits to our shareholders," said Mr Hoong.
A consortium that included its unit, FEC Properties, last month clinched a 5,722.5 sq m residential Government Land Sales site in Cuscaden Road, at a bid of $410 million, to develop a luxury residential project.
Earlier this year, it also teamed up with locally listed Koh Brothers Group to acquire and develop the Hollandia and The Estoril collective sales sites for $183.38 million and $223.94 million respectively.
FEC shares yesterday closed one Hong Kong cent higher at HK$4.65.