The brand looks to focus on its core F&B business.
BreadTalk Group will be selling its namesake international headquarters building to Singapore-listed construction and property developer Lian Beng Group for S$118 million ($88.6 million), a stock exchange announcement revealed.
The sale-leaseback transaction will see the BreadTalk Group, which was privatised by its founders last year, leasing back the property as an anchor tenant for a term of 10 years. It then has the option to either extend its lease by another five years at market rate or buy back the building at a mutually agreed price.
The acquisition will be conducted through a consortium led by Lian Beng Group, which will hold a 75% direct stake through its wholly-owned subsidiary. Other parties in the consortium are Apricot Capital with 20% and 32RE Investments with 5%.
“This 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,” BreadTalk chairman and CEO George Quek said.
The 10-storey location, which also houses some of BreadTalk's eateries, warehouses and kitchens - has a gross floor area of 248,902 sq ft.
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