In its official announcement MYP stated that various factors were taken into account before arriving at the decision to sell this property and these include the market value and the present economic conditions which have affected the property market.
ABI Plaza was listed in the market for sale earlier in June with a guide price of approximately S$280 million. However, there were only few parties who submitted their Expression of Interest by the close of the EOI exercise in July and all of those were below the current price of S$200 million.
Artemis Ventures then entered into the fray with its offer of S$206 million became the frontrunner for the office tower and also undertook a due diligence exercise.
According to MYP on the proposed sale is aligned with the group’s vision to ensure a strong balance sheet and also have sufficient capital to make investments in the future.
With this sale the group would be able to use the proceeds for higher yielding properties to improve the returns for its shareholders.
This sale comes in the backdrop of one of the worst economic crisis the world has ever seen due to the outbreak of the Covid-19 pandemic. MYP is expected to pocket S$197.5 million net proceeds from this deal part of which will go towards repayment of loan and rest would be used as general working capital.
The proposed sale would have to be approved by MYP’s shareholders at an EGM (extraordinary general meeting) or get a waiver from the Singapore Exchange. In either of the cases the firm has a 16-week deadline from the date of Sale and Purchase Agreement to meet the required obligations.
In case there are no further hurdles from the shareholders or the Singapore Exchange the deal would be completed after 4 weeks from the date of the SPA, 4 weeks from the waiver date and 2 weeks from the date of the EGM