Feb 17, 2015
    email_go E-mail to friend    shareBookmark & Share

Temasek Holdings and JTC Corporation have agreed to merge together four of their property and city planning subsidiaries to take advantage of the rapid urbanisation in emerging economies.

Both parent firms started discussing the tie-up last September and the deal is expected to be completed in 1H 2015.

Specifically, Temasek’s Singbridge Group and Surbana International Consultants Holdings will join forces with JTC’s Ascendas and JURONG International Holdings.

Based on the four companies’ market capitalisation, the resulting entity is estimated to have a total value of S$5 billion. 51 percent of the stake will be held by Temasek, while JTC will own the remaining 49 percent.

In terms of structure, the amalgamated firm will have two operating divisions: one will invest and hold assets, while the other will offer building and engineering services.

Dilhan Pillay Sandrasegara, Head of Enterprise Development Group at Temasek, said: “The merged platform offers a compelling value proposition to address the growing opportunities in the sustainable urban development sector. It brings together companies with complementary strengths, creating an enlarged platform that can compete and take on larger scale projects.”

“Through this integrated platform, we will have better scale and deeper expertise to handle many large-scale and complex urban development projects,” added Wong Kan Seng, Chairman of the new entity’s asset investment arm.

Notably, the rapid urbanisation in countries, like India and China, presents a goldmine of opportunities for companies that provide planning and construction services, the companies said.

Furthermore, the proportion of the world’s population that resides in cities is projected to increase to 66 percent by 2050 from 54 percent at present, with most of the growth in developing markets.

(Composite image)


Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg.



Related Articles:

Industrial sector to remain weak in 2015: report

JTC, SPRING Singapore inject S$2.5 million to six SMEs

Integrated industrial project in Tuas now underway

    email_go E-mail to friend    shareBookmark & Share

Search Property News