Shareholders of Orchard Parade Holdings Limited (OPHL) have approved the firm’s plans to divest three properties.
This was agreed upon at an extraordinary general meeting held Wednesday, where 99.9 per cent of shareholders voted in approval.
The three properties are: Orchard Parade Hotel, Albert Court Village Hotel and Central Square Village Residences.
OPHL said in a statement that it would now proceed with plans to list Far East Hospitality Trust — which comprises a REIT and a business trust — on the Singapore Exchange.
The company will also acquire hospitality and healthcare assets from its parent company, Singapore-based developer Far East Organisation in an asset swap deal.
Shareholders also approved a special dividend and a dividend-in-kind of the company’s 14.5 per cent shareholdings in Yeo Hiap Seng Limited (YHS).
In addition, they also approved a name change of the company to “Far East Orchard Limited”.
This was to better reflect its close alignment with its substantial shareholder, and leverage on the “Far East” brand.
The approval and support for the restructuring of the company will allow OPHL to participate more actively in its property development business.
It will also see it expand into the new businesses of hospitality management and healthcare real estate, the company said in a statement.
Mr Lucas Chow, OPHL’s chief executive officer and managing director, said: “This is the start of an exciting journey for OPHL as we expand into hospitality management and healthcare real estate.
“We will now also have the ability to explore new opportunities and develop new projects. We look forward to growing the company and building a strong and sustainable business.”
The transactions are now conditional upon the successful initial public offering (IPO) and listing of Far East Hospitality Trust on the Singapore Exchange.
Far East Hospitality Trust will lodge its prospectus and make the announcements at the appropriate time.
Source : Channel NewsAsia – 11 Jul 2012