The LG Twin Towers from South Korean conglomerate LG Group has been acquired by Singapore’s wealth fund GIC at the value of eight billion yuan (S$1.59 billion).
On Wednesday (12 Feb), GIC announced that the acquisition is an integrated development comprises two Grade-A office towers and a retail podium situated in the Guomao central business district in Beijing, China.
The development area has a diversified tenant mix as well as a total gross floor area of 140,680 square metres.
Located along a key artery road named Changan Avenue in Beijing, the LG Twin Towers provides direct access to the Yonganli subway station.
The chief investment officer of GIC Real Estate, Lee Kok Sun noted that GIC has been investing in China for more than twenty years, and he remarked that “China remains a key focus for us, and this investment reflects our continued commitment to identifying attractive opportunities in this market.”
Mr Lee expects the LG Twin Towers to yield resilient returns over the long run as well as to gain benefits from the high demand for offices in central Beijing.
Bloomberg News also reported that an initial public offering in Indonesia is in the works by GIC-backed PT Triputra Agro Persada (TAP) which could raise around S$693.2 million, according to the those in the loop regarding this matter.
TAP, who considers the buyout company Northstar Group and Indonesian tycoon Theodore Rachmat’s Triputra Group as shareholders, hasf had preliminary discussions with a few banks with regards to the potential first-time share sale which could lead to more than US$2 billion valuation of the business, Bloomberg reported. According to TAP’s sources, by the end of 2020, the company is looking to list in Jakarta.
Based on Bloomberg reporting in 2018, the owners of TAP had considered selling off the business at a valuation of around US$1 billion. Sources also told Bloomberg that an IPO was an option back then. The most recent move was made following the rebound in crude palm oil prices by more than 40 per cent from an almost four-year low, according to Bloomberg data.
As of now, it is still the early stage of deliberations and TAP could still decide not to undertake the IPO, according to sources. At this, Northstar and Triputra Group, the Representatives for GIC did not offer any comments.
Bloomberg remarked that TAP and affiliates presently have 27 estates covering over 170,000 hectares of planted area. Palm oil, which is used in products from shampoo to sweets, is the world’s most consumed edible oil.
In 2012, Northstar and GIC bought a minority stake in TAP and in 2016, they completed a follow-on investment.
