A sia-Pacific Strategic Investments Ltd (APSIL) is acquiring Singapore property brokerage firm Global Alliance Property for $2.75 million. GAP was recently formed with the merger of Global Property Strategic Alliance and MORE Property, resulting in a combined strength of about 800 agents. The latest plan follows two earlier moves — the proposed acquisition of Century 21 Hong Kong Ltd (C21-HK) and the proposed development of an online property portal.
The consideration will be paid in two tranches. The first tranche consists of $1.25 million cash while the remaining $1.5 million will be paid in APSIL shares. The issue price of the shares is pegged at 90% of the average APSIL share price for the five-day period preceding the completion of the sale and purchase agreement on which the conditions precedent for the acquisition are fulfilled or waived.
C21-HK will give APSIL access to Century 21’s marketing and operating systems as well as its retail networks. C21-HK is the sub-franchisor that grants the Century 21 franchise to licensed property brokers in Hong Kong and Macau.
APSIL has also entered into a co-operation agreement with China Real Estate Development Union Group and Oei Hong Leong Foundation to develop an online property transaction platform. CREU, a pioneer in China real estate development, will provide access to its extensive database on China’s real estate industry, policies and market trends. The proposed Internet portal will serve investors who are keen on residential and commercial properties in China and across the globe.
Choo Yeow Ming, APSIL’s CEO, says: “We envisage that with just the click of a button, users will be able to view property listings from the likes of GAP, franchisees of C21-HK and other real estate agencies that the group plans to bring on board.”
APSIL plans to raise capital to fund its new core business via a rights-cum-warrants issue, consisting of up to 3,373,458,070 new ordinary shares with 3,373,458,070 warrants, to raise up to $16.9 million. The group also intends to divest itself of HMS Capital Sdn Bhd, which owns its bereavement care services business. This divestment is expected to raise a further RM10.7 million ($3.8 million). APSIL will convene an extraordinary general meeting at a later date to approve the various changes to its core business.
“This proposed acquisition will help to kick-start the new core business that we are looking to build, as we prepare to divest our current loss-making bereavement care services,” says Choo. The new core business will also allow APSIL to benefit from a diversified global platform, moving it away from its single-country focus on Malaysia, and enabling it to explore exciting new opportunities for growth.