Singapore based mining firm Abterra bags a controlling stake in Beijing property in a US$79 million deal. Abterra to buy the 60% stake from the UK based Smart Harmony Investment limited. Abterra had long been seeking investment opportunities in the property market and the acquisition of the Beijing property is in line with Abterra’s goal of diversifying its business and creating additional income.
Abterra buys 60% stake in Beijing property for S$78.9m. Singapore companies continue to do robust realty deal abroad, and the latest involves minerals and mining firm Abterra, venturing into the realty space by buying a controlling stake in a Beijing property for just under S$79 million. Abterra, the minerals and mining group, is venturing into property investment development, and has reached a deal to acquire 60 per cent stake in a Beijing property for RMB352.4 million (S$78.9 million), the company said. Abterra will be buying this stake from Smart Harmony Investment Limited, incorporated in the British Virgin Islands.
Smart Harmony owns the entire issued and paid-up share capital of Success Linker Investment Limited, an investment holding company incorporated in Hong Kong, and the latter in turn owns the entire registered capital of Yangpu Quanan Commercial Management Co, (YPQA) a wholly foreign-owned enterprise established in the People’s Republic of China.
YPQA owns commercial properties within a mixed-use development located at Bei Yuan Hong Jun Ying South Road in the Beijing Media Village situated in Chao Yang District of Beijing, PRC.
These commercial properties are comprised in 69 property ownership certificates, which are currently tenanted out to a mix of office and retail tenants for lease duration of between five to twelve years, the company said in its regulatory filing with the SGX.
Abterra said that it had got the shareholders nod for the addition of property and minerals businesses to its core trading business in September 2011.
“The addition of the property business allows the company to diversify into property investment, property holding and property development. As set out in the annual report of the Company for the financial years ended on 31 December 2013 and 31 December 2014, the Company has been actively exploring investment opportunities in the regional property markets. The proposed acquisition presents the Company with an opportunity to enter into the property market in China, and if completed, will diversify the company’s existing businesses and provide an alternative income stream,” Abterra’s filing added.
(Source: Deal street Asia)
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