Soon Hock Enterprise Embarks on S\$351 Million Joint Venture for Major Singapore Property Development

Key Points of the Report

• Soon Hock Enterprise Holding Limited (Soon Hock) announces a significant joint venture (JV) through its wholly-owned subsidiary, Soon Hock Fortune Pte. Ltd. (SHF).
• The JV, involving seven established partners, is set up to acquire and redevelop the property located at 680 Upper Thomson Road, Singapore 787103.
• The acquisition price for the property is a substantial S\$351,000,000.
• SHF will hold a 10% stake in the JV company, Thomson Gem Pte. Ltd., and contribute 10% of the purchase price and future redevelopment costs.
• The JV is aligned with Soon Hock’s stated strategy to grow via collaborative property development, sharing both risks and capital requirements.
• Financial impact on Soon Hock’s 2025 earnings and net tangible assets per share is expected to be minimal at this stage, as the investment represents only 10% of the total JV.
• Future capital contributions for redevelopment and other associated costs may be required, but these have not yet been quantified.
• Soon Hock will provide further updates as the project progresses or as material developments arise.

Details Investors Must Know

1. Nature of the Joint Venture: Soon Hock Fortune Pte. Ltd. (SHF), a wholly-owned subsidiary of Soon Hock Enterprise, has entered into a JV agreement with six other parties—Macritchie Developments (MAC), KSH Blazar (KSH), Centurion Properties (CP), Petrus Capital Holdings (PCH), WPS (TPY), Tay Lian Xie Tarol (TAY), and Chin Hong Oon (CHO). They will collectively subscribe for 900 new shares in Thomson Gem Pte. Ltd., the JV vehicle, in proportions that reflect their shareholding in the JV.

2. Shareholding Structure:

• MAC: 26.5%
• KSH: 25.0%
• CP: 22.5%
• SHF (Soon Hock): 10.0%
• PCH: 5.0%
• WPS: 5.0%
• TAY: 3.0%
• CHO: 3.0%

SHF will subscribe for 100 new shares at S\$1.00 each, amounting to a S\$100 initial outlay.

3. Use of Proceeds and Business Plan: The JV company has won the tender for the prime site at 680 Upper Thomson Road for S\$351 million. The business plan is to redevelop the property, subject to regulatory approvals. Each partner will contribute their share of the purchase price and, if necessary, future redevelopment and associated costs in line with their shareholding.

4. Strategic Rationale: This JV represents a key step in Soon Hock’s strategy to expand via partnerships in the real estate sector. The structure allows Soon Hock to participate in large-scale developments with reduced financial exposure and risk, while leveraging the expertise and resources of established co-investors.

5. Financial Impact: The company states that its 10% participation and the corresponding capital outlay are not expected to significantly impact Soon Hock’s net tangible assets or earnings per share for the financial year ending 31 December 2025. However, the actual impact of future redevelopment costs is yet unknown and could become material in subsequent periods.

6. Ongoing Disclosure: Soon Hock’s management commits to providing timely updates to investors as the JV progresses, particularly if there are material events or financial implications.

Potentially Price-Sensitive and Shareholder-Relevant Insights

• This is a landmark project for Soon Hock, representing an entry into a major property redevelopment in Singapore’s competitive real estate market.
• The scale of the investment (S\$351 million property price) and the profile of JV partners could materially enhance Soon Hock’s growth prospects if the redevelopment is successful.
• There is potential upside for shareholders if the property’s redevelopment leads to significant value creation; conversely, shareholders should be mindful of future capital calls that could affect cash flow or gearing.
• As the JV progresses through regulatory approvals and development milestones, news flow around these events could drive share price volatility.

Conclusion: A Strategic Bet on Singapore Real Estate Growth

Soon Hock’s move into the Thomson Gem JV marks a bold step in scaling its real estate ambitions. The partnership not only diversifies Soon Hock’s portfolio but also positions the company to benefit from Singapore’s resilient property market. Investors should watch for further announcements, especially regarding redevelopment plans, capital requirements, and project milestones, as these will determine the ultimate return on investment and potential share price impact.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making investment decisions. The information herein is based solely on the official company announcement as of 22 October 2025 and does not account for subsequent developments.

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