Chitchat BreadTalk HQ 30-Year Lease Building Start From 2010 Sold For $118 Million!

[JohnTan]

A consortium led by Singapore-listed construction and property development company Lian Beng Group, announced that it has entered into a put and call option agreement to purchase the BreadTalk HQ Building for $118 million.

BreadTalk's HQ at 30 Tai Seng Road has a double frontage along Upper Paya Lebar Road and Macpherson Road (Photo: Lian Beng Group)

Lian Beng holds a 75% stake in the consortium, with Apricot Capital, the investment arm of Super Group's Teo family, taking a 20% stake. Meanwhile, 32RE, the fund management business co-founded by Matthew Ong, CEO of SLB Development, holds a 5% stake.

The BreadTalk HQ Building is a 10-storey, single-user industrial development with retail component on the first level, located at 30 Tai Seng Street. The building has a gross floor area of about 248,902 sq ft, including the retail units.

The building has double frontage along Upper Paya Lebar Road and Macpherson Road, and is within walking distance from Tai Seng MRT station. The building was designed by award-winning local architect Tan Kay Ngee, and serves mainly as BreadTalk Group’s international headquarters, housing its flagship retail brands, corporate offices, warehouse spaces as well as test and central kitchens. There are other third-party tenants among the occupants in the building.

BreadTalk Group’s international headquarters, housing its flagship retail brands, corporate offices, warehouse spaces as well as test and central kitchens (pictured above) are located within the building (Photo: Samuel Isaac Chua/EdgeProp Singapore)

The property sits on a piece of land with a 30-year lease commencing from Feb 1, 2010, with an option to extend for a further 30 years.

BreadTalk Group has committed to lease back the property as an anchor tenant for an initial lease term of 10 years, with an option to either buy back the property at the end of the lease; or to extend the lease for a further five years at the prevailing market rent.

“We are pleased to kick off 2021 by adding an attractive property to our investment portfolio,” commented Ong Pang Aik, chairman and managing director of Lian Beng Group. “The acquisition will extend our investment footprint in industrial real estate and help to diversify our property portfolio.” He expects the property to yield positive rental returns, in addition to potential capital appreciation over the longer term.

Ong: The acquisition will extend our investment footprint in industrial real estate and help to diversify our property portfolio (Photo: The Edge Singapore)

Meanwhile, George Quek, BreakTalk Group’s chairman and group CEO, says the transaction is part of “our capital re-allocation strategy towards a more asset-light model as we continue to focus on our core F&B business”.

In late December, BreadTalk’s subsidiary, Imagine Properties, divested its shophouse at Lorong Mambong for $17.2 million to Cheong Sim Lam.

https://sg.finance.yahoo.com/news/lian-beng-led-consortium-buys-055730206.html

 

[GUDANGARAM]

no money say no money.
why this bastard had to say asset light and capital re-allocation ?

 

[laksaboy]

no money say no money.
why this bastard had to say asset light and capital re-allocation ?

When you make PR statements, you have to use flowery, feel-good language. Lee Hsien Loong and his clowns at Gov dot sg do that all the time too.

That's the name of the game.

 

[rushifa666]

must be siao tk pay so much

 

[knnccb]

breakcock hongkan liao, nobody eating their high ses loti

 

[ilovechinesegal]

Wa! George quek will be fucking filthy rich.

 

[syed putra]

no money say no money.
why this bastard had to say asset light and capital re-allocation ?

Most companies do this nowadays. Including giants like shell. Everything outsourced. The remains are just the few managers and experts and their brand.

 

[syed putra]

Wa! George quek will be fucking filthy rich.

If he uses tge money wisely, he can be the next starbucks.

 

[ilovechinesegal]

If he uses tge money wisely, he can be the next starbucks.

He alrdy is or bigger than Starbucks. He has breaktalk outlets in china and still have not count his kopitiam biz which he also set up china. Filthy rich chinese all low profile keep quiet and pretend to be poor and always say themselves poor. knn

 

[laksaboy]

In my opinion, Breadtalk has its fingers in too many pies. Dim sum, Teochew pastries, bakeries, Toast Box, Food Republic, bubble tea (Nayuki, failed), hipster cafe (Butter Bean, will eventually fail). No focus.

If I were to hazard a guess: within the ranks of the top leadership in Breadtalk Group you have a bunch of porlumpars and not a lot of competent folks.

 

[syed putra]

In my opinion, Breadtalk has its fingers in too many pies. Dim sum, Teochew pastries, bakeries, Toast Box, Food Republic, bubble tea (Nayuki, failed), hipster cafe (Butter Bean, will eventually fail). No focus.

If I were to hazard a guess: within the ranks of the top leadership in Breadtalk Group you have a bunch of porlumpars and not a lot of competent folks.

I guess you are right. Stick to the succes of mcdonalds and starbucks. In breadtalk, they can serve coffee/tea in their bakery, add a few seats and sales may double instead of creating new chains.