CapitaLand, HPL secure S$2b financing facilities
for Farrer Court acquisition
April 12, 2008
Property developers CapitaLand and Hotel Properties Limited (HPL) have
secured financing facilities worth nearly S$2 billion for their collective
purchase of Farrer Court estate in prime district 10.
CapitaLand
and HPL, along with their partners, had bought Farrer Court for S$1.34
billion last June.
The
financing facilities will be used to refinance the acquisition costs
of the purchase, as well as to fund the construction and development
of the new project.
CapitaLand,
which owns a 35-percent stake in the joint venture, intends to redevelop
the site into a 36-storey condominium project with some 1,500 high-end
units.
Other
than HPL, the other partners in the JV are Wachovia Development Corp
and a Morgan Stanley real estate fund.
Farrer
Court currently comprises 618 units and has a remaining lease of 69
years.
According
to estimates, the total acquisition cost works out to about S$783 per
sq ft per plot ratio.
DBS
Bank, UOB Asia, Standard Chartered, OCBC Bank and The Royal Bank of
Scotland are the lead arrangers and bookrunners for the secured term
loan, revolving credit and bank guarantee facilities.
In
its stock exchange filing, CapitaLand said United Overseas Bank will
act as facility agent and security agent for the facilities.
These
will be secured by a mortgage over the Farrer Court property and a debenture
over the assets of the joint venture.
Source
: Channel NewsAsia - 11 Apr 2008
