BT 29 Oct 10: Top Global surges on iconic site bid, property project hopes

Business Times - 29 Oct 2010

HOT STOCKS
Top Global surges on iconic site bid, property project hopes

By JAMIE LEE

SHARES of Top Global - a Catalist-listed company led by Sukmawati Widjaja of the influential family in Indonesia - surged in active trading yesterday after making its first mark in the property scene and signalling that more property projects were on the cards.

It was the most active stock, with some 647 million shares changing hands. The shares ended at one cent, up from half a cent - or doubling in value in a single day after an intra-day high of 1.5 cents.

Top Global was part of the consortium that made a successful $250 million bid for an iconic site that includes Capitol Theatre, Capitol Building and Stamford House, it said yesterday.

With its partners - Pontiac Land's Kwee Liong Seen and Pua Seck Guan, founder of Perennial Real Estate Group and former chief executive of CapitaMall Trust Management - Top Global plans to turn the historic area into a hotel, theatre, retail and residential development.

About half of the 542,382 square feet maximum gross floor area would be set aside for retail and entertainment use, while 25 per cent each of space would be for hotel and residential use.

Separately, Top Global also announced the granting of stock options to three individuals as part of two joint ventures forged to look into property projects.

Through its subsidiary Winsland Resources, Top Global has entered into a joint venture with an individual investor Li Jian Min.

The partners, through joint-venture firm Sunshine Capital (Asia) Ltd, are expected to establish a company in Beijing to secure an exclusive right to lease and acquire hotels near transportation points such as airports and railway stations in China, as well as set up and manage an investment fund to acquire these hotels with the intention to subsequently list the company (the joint-venture business).

Winsland would hold a 60 per cent stake in Sunshine, which will have a paid-up capital of $2 million, with Mr Li holding the remaining 40 per cent.

Winsland's $1.2 million contribution would be funded through internal resources. Mr Li's $800,000 contribution will come as a loan to him from Winsland.

Mr Li was granted an option for 50 million shares in Top Global with an exercise price of two cents per option share.

The option will expire 12 months from May 1 next year. Top Global currently has some 10.77 billion shares.

Top Global also entered into a second joint venture with two individuals, Dennis Yong and Hong Eng Leong, to look into real estate development, real estate agency, trading of building materials and supplies, among others.

Top Global will own 70 per cent of the joint venture through its subsidiary, Global Real Estate Investment, with the two men taking a 15 per cent stake each. Top Global will contribute $3.5 million to the $5 million paid-up capital through internal resources.

As part of the joint venture, Top Global also granted options for 100 million shares at an exercise price of three cents per option share to each of the two men.

The options, which are subject to further terms and conditions in the joint-venture agreement, will expire in October 2012.

Top Global said the individuals are business associates of the company but did not give details. The completion of the option grants are subject to approvals from the regulatory authorities.

Top Global has had ambitions to enter the property markets of Singapore, China and Indonesia after Ms Widjaja took control of the company at the start of the year, she told BT in an interview in January.

The company - which got rid of its assets relating to the construction business to focus on property - is also run by Ms Widjaja's eldest child and only son Hano Maeloa.

Ms Widjaja's business experience was built from managing the Widjaja family business - the powerful Indonesian conglomerate Sinar Mas Group - with her siblings for about 40 years.