Hotel Properties Limited (HPL) says there is “no certainty” that discussions pertaining to the sale of its majority stakes in Forum The Shopping Mall and voco Orchard Singapore will “result in any transaction”.
The company’s announcement, released on the evening of July 29, comes after Bloomberg, citing sources, reported that it is in talks to sell majority stakes in both properties.
The firm is seeking a deal that would value both assets for at least $2 billion, according to the July 29 article.
“As stated in the minutes of the forty-fifth annual general meeting of the company held on April 29 in response to queries on the re-development of Forum The Shopping Mall and the adjacent land (which includes voco Orchard Singapore), several interested parties have approached the company, and a joint venture in relation to the properties is a possibility,” says HPL.
“The company continues to explore the viability of redeveloping the properties with some of these interested parties. There is no certainty that any discussions with these interested parties will result in any transaction,” it adds.
In a May 2 report, DBS Group Research analysts Derek Tan and Tabitha Foo say they see the “possibility of a stake sale” in HPL’s freehold Orchard Road landbank to a “capital partner”. The entire could also be “at play for value extraction”, the analysts wrote.
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HPL had already obtained the green light from authorities to redevelop three of its properties along Orchard Road - The Form, voco and HPL House - into a 1.23 million sq ft mixed-use development.
“Despite their age, all three properties occupy large, highly valuable and predominantly freehold land parcels in Orchard. As sites like these become increasingly scarce, they present a compelling opportunity for value creation through redevelopment and repositioning,” the analysts added.
Shares in HPL last traded 33 cents higher or 6.33% up at $5.54 before its trading halt at 4.28pm on July 29.
