New Creation Church “New Prized Asset”
CapitaLand, a mainboard-listed company is selling its stakes in The Star Vista to New Creation Church’s business arm Rock Productions.
The deal has reportedly been finalised at S$296 million. CapitaLand has developed The Star Vista jointly with Rock Productions.
The Star Vista which was last valued in June, 2019 for S$262 million is a retail part of an integrated development project.
CapitaLand is expected to make net profit of something close to S$32 m and it shall likely pocket net proceeds of S$145 m. They are targeting a year-end completion of the divestment.
CapitaLand Group’s president Jason Leow said that CapitaLand is following an asset recycling strategy and The Star Vista’s divestment directly falls in line with the company’s active plans.
As per the year-to-data of CapitaLand available to the public, the company has divested assets worth nearly S$5.7 billion and have already exceeded its divestment target of S$3 billion.
According to Mr. Leow the divestment proceeds with help CapitaLand improve its financial flexibility and they will be able to grab new opportunities that will allow them to grow.
In another statement released by New Creation Church (NCC), they said that CapitaLand had initiated the sale talks and had previously mentioned that there were other buyers interested in The Star Vista but were willing to discuss acquisition possibilities with NCC first.
Yong Chee Ram, the council chairman of NCC said that since The Star Vista is inextricably connected to The Star PAC, NCC’s main objective was in obtaining The Star Vista was to uphold the church’s interest and also preserve The Star PAC’s good experience.
The Star PAC (Performing Arts Centre) is owned by Rock Productions and is located next to The Star Vista.
The Star PAC is used for comedy shows, concerts and also corporate events on days when there are no service, as on those days it is used to accommodate worshiping people.
Mr Yong said that he is expecting The Star Vista to be a valuable asset for Rock Productions. He added that the group is looking at ways for CapitaLand to continue operations and management of the retail unit, on NCC’s behalf.
Mr Yong said that Rock Productions association with CapitaLand over the years as project managers of The Star PAC and owner-operator of The Star Vista have been good.
As part of the integrated development project, The Star Vista was valued at S$296 m by Savills Singapore on October, 2019. The commercial property is situated on Buona Vista.