Source : Business Times - 8 Sep 2008
CapitaLand’s wholly-owned unit, The Ascott Group has entered into a conditional sale and purchase agreement to sell Somerset Orchard, an 88-unit serviced residence along Orchard Road for a cash consideration of $100 million or about $1,530 per square foot to OG Private Limited.
The carrying value of the property is $57 million. CapitaLand is expected to recognise a gross gain of about $43 million from divesting the property.
After the divestment, Ascott will continue to manage the serviced residence for 15 years, with an option to renew the contract for another 10 years.
Somerset Orchard is part of Orchard Point, which also includes a four-storey retail podium which OG currently owns.
Ascott had made the offer to OG to purchase the serviced residence component of the complex in accordance with the right of first refusal granted to OG in the agreement signed when OG bought the retail podium from Ascott in 2001.
No comments:
Post a Comment