Lian Beng

Lian Beng: In a news feature by the Business Times, another deal could be on the card for the sale of former Midlink Plaza in Middle Road, with China’s Nanshan group reportedly said to be in talks to the buy the property for $270m. Midlink Plaza is owned by a consortium – 122 Middle Investment, whose shareholders include Lian Beng group, Centurion Properties and coffeeshop operator Chang Cheng group. The site is currently being redeveloped into a 396-room boutique hotel with some strata retail space. The consortium first acquired Midlink Plaza in 2011, at a price of $126.8m, which works out to just under $1,000 psf per plot ratio. The balance lease on the site is about 65 years. Earlier this year, the consortium signed a MOU with nightspot operator LifeBrandz for the injection of 122 Middle Investment into LifeBranz as part of a reverse takeover deal, although the deal was terminated last month after both parties failed to come to a mutual agreement. While there is no certainty that the potential deal with Nanshan group will materialize, market watchers are of the view that the negotiations could involve a complex agreement with profit upside for the vendors and income guarantees. Based on Lian Beng’s annual report, the group holds a 19% stake in 122 Middle Investment.