Zitong Financial App News, Jedi Group (08313) announced that it has successfully won the bid for the second time this year through wholly-owned subsidiary ZACD Capital Partners VCC and the designation of a wholly-owned special purpose development entity, and recently won another permanent property housing redevelopment project (La Ville project) located in 6C and 6D Tanjong Rhu Road in Singapore. The company will establish a sub-fund to invest in the La Ville project (fund) together with other joint venture partners identified and to be identified.
Upon the finalization of the joint venture structure of the fund, it is expected that the fund will hold more than 50 per cent but not more than 70 per cent of the shares in the La Ville project, and the remaining shares will be held by the identified and identified joint venture partners. The fund will be a closed-end real estate private equity fund with a target fund of about S $36 million (depending on available bank financing), assuming it holds a 70 per cent stake in the La Ville project. In order to facilitate the initial establishment of the fund, the company will invest 5 to 10 per cent of the seed capital into the fund, or about S $1.8 million to S $3.6 million, depending on the final fund-raising progress of outside investors.
It was awarded a successful bid by the development entity on November 30, 2021 in accordance with the agreed terms and conditions, with a final purchase price of S $152 million. In accordance with the winning terms, an initial amount of S $500000 for the project was submitted and S $7.1 million (a total of 5% of the purchase price) was paid on December 7, 2021. The legal completion date has been scheduled for June 1, 2022.
The La Ville project, a 40-unit high-rise permanent lease development in the Tanjung Rhu area, was built in the 1980s and is located in a well-known and sought-after residential development zone with a land area of 47012 square feet. According to the Urban Renewal Authority's 2019 master plan, the project is zoned 'Residential'. The development zone has superior convenient conditions, convenient channels and transportation facilities. The location is close to a wide range of shopping and entertainment facilities located in Kallang Wave Mall, East Coast Road, with a wide range of shopping malls and dining options. The most popular food centers on Tanjong Rhu and Old Airport Road are also nearby. The proximity to many popular living and sports facilities, such as the Singapore Sports Centre, Marina Bay Golf course and Singapore Swimming Club, is also a short drive. Changi International Airport is only a 15-minute drive. In addition, famous schools in neighboring areas include Dunman High School,Chung Cheng High School, Kong Hwa Primary School, Canadian International School (Tanjong Katong) and Chatsworth International School (East).
The company's board of directors believes that the La Ville project is an attractive and feasible real estate investment opportunity for the group, and the company's fund investors will certainly be more optimistic about this opportunity. The board of directors believes that the fund will make a positive contribution to the group's investment management services business and create more types of services for the group's investment management business. The fund will be funded by ZACD Capital Pte. Ltd. Administration and Management.