South Beach consortium secures S$1.6b in new funding

A consortium established to develop South Beach, the commercial and lifestyle hub at Beach Road, has successfully secured S$1.6 billion in new funding.

The funds will be used to refinance its S$800 million bank loan facility and to finance the construction of South Beach. The five-year secured term loan is provided by a syndicate of banks including DBS, UOB, OCBC, HSBC and Sumitomo Mitsui.

The announcement comes as the consortium undergoes some changes in its investor line up.

IOI Corporation became the consortium’s newest investor after acquiring the 33.33 per cent stake held by Elad Group Singapore, earlier this month.

Meanwhile, the consortium’s majority shareholder City Developments also announced that it had acquired the Istithmar Beach Road FZE’s 33.33 per cent stake in the project, through its joint venture firm Scottsdale Properties.

A restructuring deal was subsequently concluded between CDL and IOI, following which CDL now holds a 50.1 per cent stake while IOI holds the remaining 49.9 per cent stake in the consortium.

South Beach comprises two blocks of premium office space, a luxury hotel, city residences and high-end retail space.

Construction has begun, and is on track for completion in 2015.

Source : Channel NewsAsia – 18 Apr 2011

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