The Assembly Place enters JV to redevelop Jalan Harom Setangkai site into five terraced houses

The Assembly Place Holdings (TAP) has taken a 10% stake in a joint venture (JV) that has acquired the freehold residential property at 50 Jalan Harom Setangkai. It is located within Chip Hock Gardens, a landed housing enclave off Farrer Road, at Gallop Park in prime District 10. It’s also a short distance from the Botanic Gardens.

While TAP did not disclose the purchase price, a caveat lodged in February shows that the detached house, which sits on a freehold site of 10,801 sq ft, was acquired for $22 million, or $2,037 psf. The acquisition was completed on Aug 5, TAP announced on Aug 6.

The property will be redeveloped into five terraced houses for sale by a joint venture comprising Two Three Holdings, which holds a 50% stake; Apricot JHS, a related company of Apricot Capital, with 30%; and TAP and Beth Reserve, which each hold 10%.

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Two Three Holdings is controlled by TAP’s non-executive chairman and substantial shareholder Eric Low See Ching.

TAP’s wholly owned subsidiary, TAP Co-living, will be appointed project manager for the redevelopment. It will also be involved in the sales and marketing strategy for the five houses, on terms to be agreed among the joint venture partners.

The acquisition and redevelopment will be partly financed through bank financing, with the balance provided by the joint venture partners through interest-free shareholder loans in proportion to their respective stakes.

The shareholder loans are expected to total up to $8.8 million. TAP’s share will amount to about $900,000, funded from its initial public offering proceeds. About $600,000 had been deployed as at the date of the announcement.

As Low controls Two Three Holdings, the joint venture company is considered his associate and therefore an interested person. TAP’s provision of the shareholder loan to the joint venture is consequently regarded as an interested person transaction.

The loan represents about 3.6% of the group’s latest audited net tangible assets. As this is below the 5% threshold under Catalist rules, shareholders’ approval is not required. TAP added that all the joint venture partners are providing their loans in proportion to their stakes and on the same terms.

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TAP says the investment is in line with its asset-light, co-investment strategy, allowing the group to participate in property development while limiting its capital commitment.

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