Frasers Property (FPL), through its wholly-owned subsidiary, Lion (Singapore), has bought the 1,477-seat Golden Village cineplex in Yishun, formerly known as Yishun 10, for $48 million.
On June 2, FPL’s subsidiary entered into a sale and purchase agreement (SPA) with Golden Village Multiplex, an indirect wholly-owned subsidiary of Hong Kong-listed film production company Orange Sky Golden Harvest Entertainment.
The cineplex is located on the second to fourth floors at 51 Yishun Central 1, next to the Northpoint City mall. It has a carrying value of around $45.1 million.
Under the sale and purchase agreement, FPL’s unit will have to pay an additional $2 million with GST if it obtains or procures building permission for the redevelopment of the property within 12 months from the date of completion.
Golden Village Multiplex has agreed to help obtain the renewal of the fire certificate for the property by no later than June 29. The vendor will also appoint a “competent person” to inspect the building’s facade and submit the inspection report to the Building and Construction Authority of Singapore (BCA) by June 30.
The SPA is subject to Orange Sky’s shareholders approving the disposal and no objections from the Hong Kong bourse among other factors.
FPL is also entitled to rescind the SPA if there is a breach of warranties and representations on the title of the property
Upon the completion of the transaction, the cinema will be leased to Golden Village Multiplex. The lease agreement will take place for a term of 18 months from the date of completion.
The monthly rent payable will be 10% of Golden Village Multiplex’s monthly gross sales from its business operations on the property.
This story first appeared on The Edge Singapore.
