TEE Land gets green light for SGX listing
The Straits Times
| April 20, 2013
Engineering and real estate group TEE International has been
given the green light to list its real estate arm on the Singapore Exchange
mainboard.
The company said in an SGX filing yesterday that the bourse
operator has given its unit TEE Land a letter of eligibility to list. The group
develops properties in Singapore and Thailand.
Most of its local residential projects are in the East Coast
area and range from one-bedroom apartments costing about $550,000 to cluster
terraces that cost over $3 million.
Its projects here include The Thomson Duplex, which received
its temporary occupation permit (TOP) in April 2010, and Cantiz @ Rambai, which
received its TOP in November 2010 and is in Joo Chiat.
TEE Land is helmed by Mr Jonathan Phua, 38, the nephew of
TEE International chief executive Phua Chian Kin, 53. Mr Jonathan Phua oversaw
19 projects in Singapore and across South-east Asia as of last month.
TEE Land's stake in these residential, commercial and
industrial properties has a gross development value of about $684 million.
TEE Land said in a statement that it will remain a unit of
TEE International, but it expects to issue new TEE Land shares.
The issuance of this unspecified number of new shares will
result in TEE International's shareholding falling by at least 20 per cent
after the proposed listing, TEE Land said.
This means that TEE International needs to seek shareholder
approval for the spin-off in an extraordinary general meeting.
The listing is contingent on TEE Land raising at least $20
million in gross proceeds from an initial public offering (IPO), a minimum
market capitalisation of $150 million as at listing and a minimum issue price
of 50 cents.
TEE International said in February that it would inject $16
million of its property assets into TEE Land as part of its plan to spin off
TEE Land and list it on the SGX by next month.
It also said in February that certain pre-IPO investors have
agreed to invest $4 million in TEE Land when the restructuring is completed.
Last month, TEE International announced it had set up two
units under TEE Land, called TEE Industrial and TEE Hospitality.
OCBC Research said in a note that the choice of names
suggests that TEE Land is preparing to expand its property business further
into the industrial and hospitality services segments.
TEE International's board said in a statement yesterday that
there was no assurance that the proposed listing would materialise in due
course.
TEE International's share price closed 1.5 cents higher at
37 cents yesterday.
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Property Network Pte Ltd (L3007960A)
Email: marshe_inc@yahoo.com.sg
