TUAN Sing Holdings : T24 0% on Tuesday (May 14) confirmed that it has acquired a newly completed mixed-use property located within Robertson Quay for S$140.9 million.

The property, known as Fraser Residence River Promenade, is a four-storey serviced apartment development with 72 units, three conservation warehouses and 47 car park lots, located at 5 Jiak Kim Street.

The sale confirms an earlier report by The Business Times that Frasers Property was in advanced negotiations for a potential sale of this mixed-use property. 

The sale agreement is between Heliconia Land, a wholly owned subsidiary of Tuan Sing, and Frasers Property Quayside. The transaction was made on a “willing buyer, willing seller” basis, after taking into account, among other things, various commercial factors, including the location of the property, the property market in the vicinity, and the prevailing market conditions, said Tuan Sing.

The purchase will be financed through the group’s internal sources of funds or external borrowings, or a combination of both, it added.

The acquisition is part of its broader growth strategy to expand its hospitality business in Singapore and the region, it said.

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Tuan Sing has two existing hospitality assets in Australia: Grand Hyatt Melbourne and Hyatt Regency Perth. The investment company’s portfolio will be expanded further when its Opus Bay project in Batam, an integrated township with a hotel component, is completed.

Fraser Residence River Promenade will allow the group “to enlarge its hospitality portfolio’s product (offerings) and geographical presence, contributing to its overall growth strategy”, said William Liem, Tuan Sing’s group chief executive officer. 

The mixed-use project received its temporary occupation permit in May last year and opened its doors in September.

In a separate filing, Frasers Property said the divestment is in line with its strategy “to recycle capital as part of its ongoing portfolio management initiatives”.

Following the sale, the serviced apartments will continue to be managed by Frasers Hospitality under the Fraser Residence brand.