[SINGAPORE] A wholly owned subsidiary of Frasers Property has agreed to buy the Yishun cinema complex from Golden Village Multiplex and lease back the property to the cinema chain.
Frasers unit Lion (Singapore) conditionally agreed to purchase the property for S$48 million, Orange Sky Golden Harvest Entertainment said in a statement. Hong Kong-listed Golden Harvest is the parent company of Golden Village Multiplex.
The property at 51 Yishun Central 1 currently houses a 1,477-seat GV multiplex. The 10 cinema halls are on the second and fourth floors of a four-storey shopping-cum-entertainment complex known as Yishun 10.
The acquisition follows recent news of Frasers Centrepoint Trust’s (FCT) acquisition of the South Wing of Northpoint City for S$1.17 billion. Frasers Property is the sponsor for FCT.
Following the acquisition, FCT will have full ownership of Northpoint City, said Richard Ng, chief executive of the manager of the trust. “With full control, FCT will be able to implement holistic asset enhancement initiatives and tenant mix strategies to unlock further value across both wings,” he noted. FCT acquired the North Wing in 2006.
Upon completion of the latest deal, Lion (Singapore) will lease the property to Golden Village Multiplex for an 18-month term, at a monthly rent of 10 per cent of the cinema operator’s monthly gross sales from business operations at the site.
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The purchase price, which excludes goods and services tax and is subject to further adjustments, was determined based on arm’s length negotiations between the parties with reference to the property’s appraised value according to a valuer as at May 28, Orange Sky Golden Harvest Entertainment said.
Based on audited financial statements of the group for the year ended December 2024, the property has a carrying value of around S$45.1 million.
Completion of the sale is subject to conditions, including the passing of resolutions from shareholders approving the sale.
Sale proceeds are expected to go towards repaying existing bank loans of Golden Village Multiplex and for Orange Sky Golden Harvest Entertainment’s working capital.
The Hong Kong-listed company said that based on market conditions in Singapore and after taking into account its financial and liquidity position, its board believes that the disposal will let it realise its investment in the property and generate additional cash flow.
The additional working capital from the sale will allow it to continue operating its cinema business out of the property and facilitate a stable business environment for the business, the group said.
Orange Sky Golden Harvest Entertainment has been mulling disposals of its movie theatres in Singapore since March 2024.
