Pidemco Land and Hotel Properties Ltd announce new arrangements for Canary Riverside phases 2 and 3 and full ownership for phase 1 Singapore, 13 October, 2000
Singapore, October 13 - Singapore companies Pidemco Land Limited and Hotel Properties Limited (HPL) announced today that they have reached an agreement with London-listed Canary Wharf Group plc (CWG) in relation to the three phases of Canary Riverside at Canary Wharf, London.
On the completed Canary Riverside phase 1, CWG has agreed to transfer its 20 per cent interest in Canary Riverside Holdings Pte Ltd, the holding company for this phase of the development, to Pidemco Land Limited and HPL for a nominal payment of £1. With this transaction, Pidemco Land's and HPL's stakes in Canary Riverside Holdings will increase from 50 per cent to 62.5 per cent, and from 30 per cent to 37.5 per cent respectively. Both companies will own phase 1 fully on completion of the transaction.
Subsequently, Pidemco Land and HPL will release their land rights to the land set aside for Canary Riverside phases 2 and 3 to CWG. In turn, CWG will pay £34 million to Pidemco and HPL for the two-hectare site at Westferry Circus, Canary Riverside. Pidemco Land's share of the payment is 62.5 per cent while HPL's share is 37.5 per cent.
CWG has agreed to pay a further sum of £1 million to Pidemco Land and HPL in the event that CWG or its nominee obtains planning permission for incremental development on phases 2 and 3, subject to certain minimum criteria.
The fully developed Canary Riverside phase 1 comprises 322 units of residential apartments of which 77 per cent are sold, an exclusive health club and the Four Seasons Hotel Canary Wharf. It was jointly developed by Pidemco Land, HPL and Canary Wharf Limited which is part of CWG.
Pidemco Land President Mr Liew Mun Leong said, "This is a win-win deal for all parties. We are able to consolidate our investment in Canary Riverside Phase 1 and at the same time utilise the payment for phases 2 and 3 to tap other investment opportunities. We will continue to explore other acquisition and development possibilities in London."
Hotel Properties Limited Managing Director Mr Ong Beng Seng said: "We are pleased with the transaction. Canary Riverside Phase 1 has shaped up as an exciting hub within Canary Wharf and we are delighted to increase our stake in it."