I'm LongbridgeAI, I can summarize articles.Zhang Jian'an, the founder of DeYun DeShi Company, successfully bid SGD 55.5 million for 10 HDB shop units sold by SingPost, with the transaction price exceeding the asking price by 11%. These shop units are located in multiple HDB precincts, with a total area of approximately 20,119 square feet, and an annual total return rate ranging from 4.32% to 4.98%. Through this transaction, SingPost is expected to profit, as it faces industry downturn pressures and has closed several post offices
Singapore Post is reported to have sold 10 HDB shop units for SGD 50 million, with the assets purchased by Zhang Jian'an, founder and president of Trans-Cab, at a price of SGD 55.5 million, which is 11% higher than the asking price.
Zhang Jian'an confirmed this transaction in response to an inquiry from Lianhe Zaobao on Monday (August 4). He stated, "One of my companies offered SGD 55.5 million, which was the highest bid, thus winning the tender."
In addition to being the president and chairman of Trans-Cab, Zhang is also the founder and non-executive chairman of Union Gas Holdings, a fuel product supplier.
On June 19 this year, Singapore Post was reported to have sold and leased back 10 HDB shop units for SGD 50 million. These shop units are located in various HDB precincts.
Among them, the shop unit located at Teban Gardens Road had the lowest price at SGD 2.4 million, while the one at Bedok North had the highest price, reaching SGD 7.1 million.
The total stratified area of the 10 HDB shop units is approximately 20,119 square feet, with an annual total return rate ranging from 4.32% to 4.98%. Through the sale and leaseback of these HDB shop units, Singapore Post estimates it can profit from the valuation increase and cash inflow from the sold projects.
These shop units were marketed by CBRE through an "expression of interest" approach.
Extended Reading
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According to information from the Singapore Post website, due to industry headwinds, it has closed several post offices in recent years and currently operates about 42. These post offices are located in properties previously owned by the Singapore Land Authority, HDB ground floors, and other commercial spaces
Analysis: This transaction may be a win-win situation
As for Zhang Jian'an, his business landscape has expanded significantly in recent years.
For example, DeYun Taxi attracted a takeover proposal from Grab last July. Although it fell through due to potential violations of competition law, DeYun Taxi continued to expand its fleet, welcoming about 500 new taxis last year and this year, and plans to add hundreds of private hire vehicles.
On the other hand, YouLian Energy, founded by Zhang Jian'an, has now developed to over 300 employees, with businesses covering the traditional oil and gas industry, photovoltaics, electricity retail, and electric vehicle charging, and is exploring new fields such as energy storage and carbon emission reporting consulting.
When discussing this acquisition, MOGUL.sg's chief researcher Mai Junrong said in an interview that in the current environment of declining interest rates, investors seeking stable rental income may be interested in the assets sold by SingPost.
So, did Zhang Jian'an offer too high a price? In response, Mai Junrong said that each bidder's offer depends on their own financial situation and assessment of the asset's value.
"This is a sale-and-leaseback transaction, and since SingPost will continue to act as the lessee during the lease term, the buyer can gain certain assurances."
Mai Junrong continued to point out that this transaction could be a win-win situation for both SingPost and Zhang Jian'an