SingXpress wins Balestier site with $21m bid

Published November 26, 2010

SingXpress wins Balestier site with $21m bid

By JAMIE LEE

SINGXPRESS has successfully tendered for a $21 million property project at Balestier Road through a subsidiary, it said yesterday.

The company, which recently shed its travel-related businesses to focus on property investment, said it plans to redevelop an existing block of 16 flats at 235 Balestier Road, known as Waldorf Mansions.

The site has a permissible total gross floor area for construction of 31,875 sq ft for residential use.

SingXpress intends to redevelop it into about 50 apartments.

The initial funding of $7 million will come through equity and shareholders' loans.

SingXpress will pay 90 per cent of that amount, in proportion to its stake in its subsidiary that won the bid. The balance of the funding may come through shareholders' loans, it said.

No date has been set for the completion of the development, but SingXpress said it did not expect the acquisition to have a significant effect on the group's earnings for the current financial year.

The company said it failed in a second tender, but did not give details.

SingXpress said this month that its Catalist sponsor Phillip Securities had resigned because the brokerage has not been able to fill the position for head of its corporate finance department.

The last day of its sponsorship is Feb 11.

Phillip Securities has also resigned as sponsor for Asiamedics, citing the same reason.

When contacted, a spokesman for the brokerage would only say that it is working with the companies to find new sponsors.

Source: www.businesstimes.com.sg