With regards to Perennial Real Estate Holdings’ announcement on the consideration of an enbloc sale of AXA Tower at no less than S$1.65b, BreadTalk Group holds a 5.31% stake in the special purpose vehicle that owns AXA Tower in Singapore. The consideration for the enbloc sale was due to receiving a number of enbloc sale enquiries for the development.

Back in 2015, the consortium bought AXA Tower at S$1.17b and BreadTalk bought its 5.31% stake in AXA Tower for a cash consideration of S$19.4m. Should the sale of AXA Tower go through, in a similar vein to past cases, we believe it is likely that shareholders can look forward to special dividends.

The group’s other property investments include CHIJMES and Beijing Tongzhou Integrated Development. 2Q17 results will be released after market close today; we currently have a HOLD rating while our fair value estimate is under review.

Source: OCBC Research - 2 Aug 2017