Wharf Real Estate Investment Company (1997) sold its last Singapore property, Scotts Square, in the premier Orchard Road shopping district for S$310 million (HK$1.92 billion) to Singapore’s leading landlord, Bloomberg reported on Monday.
The transaction is expected to complete on November 10 this year, subject to the terms and conditions of the sale and purchase agreement. Following the news, the Wharf REIC’s shares opened 1 percent lower on Tuesday.
The buyer of Scotts Square is local real estate investor Raj Kumar and his son, Kishin RK. The father-son duo has become well known in recent years for acquiring and refurbishing high-end commercial properties in Singapore, holding multiple office, retail, and hotel projects in their portfolio.
Wharf REIC sold its Singapore asset Wheelock Place to Hongkong Land for S$1.11 billion. In its interim results report, Wharf REIC said the sell-off was made at a 12 percent premium to book value, and upon completion of the transaction, the company would recognize a substantial capital gain and reduce its debt. Completion was expected in late August this year.
Bloomberg previously reported that Wheelock Place and Scotts Square shopping center in Singapore had a combined valuation of HK$7.7 billion as of the end of last year.
