Knight Frank Buy Back Remaining 55 Stake Knight Frank Singapore Af Global 3689 Mil

Knight Frank LLP, a leading global real estate advisory company, has recently made an announcement that its subsidiary Knight Frank Asia Pacific will be taking over the remaining 55% stake in Knight Frank Singapore from AF Global, a Singapore-listed company. The purchase transaction is worth $36.89 million.

According to AF Global’s announcement to the Singapore Exchange on 8th October, the company is planning to sell its 55% stake in Knight Frank Pte Ltd (KFSG) to Knight Frank Asia Pacific, which already owns 45% of the shares. The sale will be carried out by AF Global’s wholly-owned subsidiary, Cheong Hock Chye & Co.

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As per the announcement, AF Global has signed a non-binding head of terms with Knight Frank, which gives the latter exclusive rights to carry out due diligence and evaluate the sale. The deal is subject to the satisfactory outcome of the due diligence process. As a part of the agreement, Knight Frank has paid an exclusivity fee of $150,000.

KFSG is one of the leading real estate consultancy firms in Singapore, with subsidiaries like Knight Frank Property & Facilities Management and KF Property Network. The company offers a wide range of services, including leasing, auctions, investment sales, retail planning and consultancy, office advisory, property asset management, valuation, research, and overseas property marketing.

Based on unaudited financial statements for the six months ending 30th June, the book value and net tangible asset value of the shares being sold is approximately $33.326 million. After accounting for expenses and costs, AF Global expects to make a gain of $3.435 million from the sale.

AF Global has cited the reason for the proposed sale as a desire to divest from a legacy investment that is not a part of its main hospitality business. The company currently operates a hotel in Thailand and serviced residences in Vietnam and Laos. AF Global also clarified that it is not involved in the operations of KFSG, which is managed independently by its own management team.

The announcement by AF Global coincides with a separate proposal to take the company private. A consortium consisting of Aspial and JK Global Investments, an entity owned by the chairman and CEO of Fragrance Group, Koh Wee Meng, has expressed interest in acquiring all of AF Global’s shares at 11 cents each through a scheme of arrangement. If the scheme is approved, the consortium intends to delist AF Global.

AF Global has also stated that the proposed privatisation will allow the consortium and its management more flexibility in managing its business and optimizing capital resources without the regulatory and financial burdens of being a listed company. Currently, Aspial owns a 41.75% stake in AF Global, while Koh holds 30.91% of the shares.

In a separate announcement to the Singapore Exchange, Knight Frank and Ipsos jointly conducted a survey which revealed that rising costs are affecting the satisfaction levels of Singaporeans with the overall quality of life.