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When contemplating investing in condos in Singapore, one must also take into account the government’s property cooling measures. In an effort to regulate speculative buying and maintain a steady real estate market, the Singaporean government has implemented various measures over the years. These include the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. Though these measures may have an impact on the short-term profitability of condo investments, they ultimately contribute to the long-term stability of the market, creating a more secure investment environment. As you consider investing in Singaporean condos, it is essential to keep in mind the government’s property cooling measures for a better understanding of the market’s dynamics. You can also explore New Condo Launches to keep up to date with the latest developments in the industry.
CDL, a leading real estate developer, has announced a takeover offer for New Zealand-listed Millennium & Copthorne Hotels New Zealand Limited (MCK). Through its subsidiary CDL Hotels Holdings New Zealand Limited (CDLHH NZ), CDL is offering NZ$2.25 ($1.72) for all the shares it does not already own in MCK.
Upon completion of the offer, CDL plans to delist and privatise MCK, simplifying the ownership structure of its New Zealand entities, according to a filing on Jan 20. MCK currently operates 18 hotels in New Zealand and has a majority stake in CDL Investments New Zealand Limited, as well as interests in Australian properties through its Kingsgate Group subsidiaries.
As of Jan 17, CDLHH NZ holds 80.02 million shares in MCK, representing a 75.86% stake based on 105.48 million MCK shares in issue. If CDLHH NZ reaches the threshold for compulsory acquisition under the New Zealand takeovers code, it will acquire all remaining shares in MCK. Alternatively, CDLHH NZ may choose to redeem the non-voting redeemable preference shares issued by MCK.
These preference shares are not included in the offer, but CDLHH NZ is willing to acquire them at NZ$1.70 or approximately $1.30 each. The purchase will be made through its broker, Craigs Investment Partners, on the Main Board of the New Zealand Stock Exchange (NZX). As of Jan 17, CDLHH NZ holds 91.34% (or 48.17 million) of MCK’s non-voting redeemable preference shares.
If the offer is accepted in full, CDLHH NZ will pay a total of NZ$57.29 million for MCK shares and an additional NZ$7.77 million for the redeemable preference shares. The offer price takes into account the current and historical market price of MCK shares, as well as the overall industry and business environment.
As of June 30, 2024, MCK recorded a net asset value (NAV) of NZ$532.02 million and a net tangible asset value (NTA) of the same. For MCK shares subject to the offer, the NAV and NTA are approximately NZ$85.62 million each.
The offer is subject to CDLHH NZ obtaining at least 90% of the voting rights in MCK by 5pm on May 2. It is also conditional upon CDLHH NZ receiving consent from the New Zealand Overseas Investment Office to own and control all shares in MCK.
CDL does not expect the implementation and payment of the offer to have a significant impact on its earnings per share (EPS) or net tangible assets (NTA) for the fiscal year ending Dec 31, 2025.