isetan-2q-losses-narrow-15-mil
https://www.theedgesingapore.com/isetan ... row-15-mil
The BT report said that SGReit's manager, part of the YTL Group controlled by Malaysian tycoon Francis Yeoh, issued a letter of intent to Isetan more than a month ago , to open talks on acquiring the Japanese firm's share in the shopping mall.
It is also believed that, to close is grip on the property, YTL Starhill Global Reit Management has signalled that it is prepared to offer more than $290.7 million - the fair value of Isetan's investment stake in Wisma Atria as at the end of 2018, as determined by an independent valuer.
6. Chairman Tan Sri Dato’ Francis Yeoh said that the management is pursuing a deal to buy over the remaining 25.8% stake at Wisma Atria from Isetan Singapore.
The management has approached Isetan every 3-4 years on the possibility of a sale but has been unsuccessful so far.
He added that Isetan Singapore isn’t doing well and dilutes the average rent at Wisma Atria by leasing space to tenants at a lower rate than SGREIT.
The chairman revealed that a major hotel group had already approached the management about the possibility of adding a hotel component to Wisma Atria and owning 100% of the property would give SGREIT the opportunity to explore that option.
Developing a brand-new hotel from the ground up would normally take years but refurbishing an existing building would take less time. Coupled with its prime location along Orchard Road, Wisma Atria would be an attractive site for a premium hotel operator.
In the last five years Isetan (Singapore) saw its revenue shrink by 26% per year.
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