5 days ago
Frasers unit to buy S$48 million Yishun cinema complex from Golden Village
[SINGAPORE] A wholly owned subsidiary of Frasers Property has agreed to buy a cinema complex in Yishun Central from Golden Village Multiplex and lease back the property to the cinema chain.
Under a sales and purchase agreement inked on Monday (Jun 2), Frasers unit Lion (Singapore) conditionally agreed to purchase the cinema complex for S$48 million from the cinema operator, based on a media statement by Orange Sky Golden Harvest Entertainment.
Golden Village Multiplex is owned by the Hong Kong-listed film company.
The property, located at 51 Yishun Central 1, is the current site of a Golden Village cinema.
It comprises a 1,477-seat cinema complex, including 10 cinema halls, located on the second and fourth floors of a four-storey shopping-cum-entertainment complex known as Yishun 10.
Golden Village Multiplex owned and occupied a cinema from the property for the fiscal years ended December 2023 and December 2024.
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Upon completion of the agreement, 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.
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.
On reasons for the sale, 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.
