What’s new: China’s largest private shipbuilder bought an office building in Singapore for S$399 million ($300 million) from Vietnamese real estate conglomerate Van Thinh Phat Holdings Group after the group’s chairwoman was arrested for alleged bond fraud.
Yangzijiang Shipbuilding Group said in a statement March 29 that its unit Yangzijiang Realty Pte. Ltd. agreed to buy a 21-story office tower at 39 Robinson Road in Singapore from Viva Ventures Ltd., an affiliate of Thinh Phat Holdings.
The shipbuilder said it will fund the deal entirely with its own cash, and it sees the investment as a hedge against global inflation. Yangzijiang’s stock is traded in Singapore and is a component of the Straits Times Index.
Yangzijiang said it will appoint a specialist property manager to run the building, which it plans to make an attractive financial center for institutional investors and tenants such as family offices.
The background: Truong My Lan, chairwoman of Van Thinh Phat Holdings Group, was arrested in October in Vietnam together with other company officials in connection with an investigation into illegal issuance and trading of bonds of some companies from 2018 through 2019, according to the country’s Ministry of Public Security.
Viva Ventures, formerly known as Viva Land, bought the Singapore property in 2020 for S$500 million from Singapore-traded real estate investment firm Tuan Sing Holdings, according to real estate information firm Edgegroup.
Viva Land asked for S$470 million for the building, but potential bidders noted that the controversy surrounding Truong’s arrest and questions regarding the properties’ ultimate ownership were obstacles to a sale, local media reported.
Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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