Renaissance United Limited: Major Property Acquisition in Malaysia By Wholly-Owned Subsidiary

Summary & Highlights

• Renaissance United Limited (“the Company”) has announced the acquisition of an additional serviced apartment unit in Malaysia, bringing its total holdings in the Skyline One Sentosa development to eight units.
• This transaction, together with the prior purchase of seven units, elevates the deal to a major transaction under SGX Listing Rule 1014, potentially requiring shareholder approval.
• The acquisition leverages proceeds from the Falling Water Project Sale (announced 14 February 2024), marking a strategic expansion of the Company’s property development segment into Southeast Asia.

Details of the Transaction

Background

The Company, through its wholly-owned subsidiary Renaissance United Assets Sdn. Bhd. (“RUA”), originally reserved eight serviced apartment units in the Skyline One Sentosa project, Johor Bahru, Malaysia. However, only seven units were confirmed for purchase on 22 October 2025 due to the eighth unit, A-23-18, being reserved for “Bumiputra purchase only.” Late December 2025, the Vendor, Plaza Sentosa Properties Sdn. Bhd., confirmed the release of the New Unit for sale at the previously reserved price, with the Additional Sale and Purchase Agreement (SPA) signed on 31 December 2025 and fully executed on 20 January 2026.

About the Properties

• Total Units Acquired: Eight serviced apartments (seven from initial acquisition, one additional unit).
• Location: Aloft Tower, Skyline One Sentosa, Johor Bahru, Malaysia.
• Total Floor Area: 440 sq. m. (seven units: 385 sq. m.; new unit: 55 sq. m.).
• Tenure: Freehold interest.
• Development Status: Building under construction; expected completion within 66 months from SPA dates.
• Purchase Price: New unit RM507,584 (~S\$155,700); aggregate for all eight units RM4,034,272 (~S\$1,237,507).
• Payment Structure: Staged payments linked to construction milestones, with an initial 10% due immediately.
• Valuation: Independent valuation by JLL Appraisal & Property Services Sdn. Bhd. confirms market value aligns with purchase price; confirmation letter issued 30 December 2025 for the additional unit.

Financing

The acquisition will be funded via a mix of internal resources and external financial facilities (bank loans or similar).

Strategic Rationale

The acquisitions are part of the Group’s ongoing reinvestment strategy, utilizing proceeds from previous asset sales to drive growth in the property development segment. Renaissance United aims to expand its footprint beyond the USA and China, positioning itself in key Southeast Asian real estate markets with high growth potential. The location of Skyline One Sentosa in Johor Bahru is strategic, near transport hubs and commercial centers, enhancing the long-term value proposition of the acquired properties.

Regulatory and Shareholder Considerations

• Major Transaction Classification: The aggregate value of the acquisition is 20.02% of the Company’s market capitalization, triggering Rule 1014 of the SGX Listing Manual.
• Shareholder Approval: The Company will seek guidance from SGX Regco on the necessity of a general meeting and will issue a circular if required.
• Ordinary Course of Business: Management contends that acquisitions like this are routine within its property development business, and the classification as a major transaction is largely due to timing and FX movements.
• No Change in Risk Profile: The Board asserts familiarity with the Malaysian legal and business environments; the acquisition does not materially impact risk or strategic focus.

Financial Impact

• Loss Per Share and Net Tangible Asset (NTA): No immediate impact, as the properties are under construction and cash outflow is offset by asset acquisition.
• Pro Forma Effect: For the year ended 30 April 2025, both loss per share and NTA per share remain unchanged post-acquisition (Loss per share: 0.161 cents; NTA per share: 0.505 cents).
• No Director/Shareholder Interest: No director or controlling shareholder has any interest in the transaction, other than shares held in Renaissance United.

Share Price Sensitivity & Investor Considerations

Potential Price-Sensitive Factors:

• Major Transaction Status: The need for shareholder approval and classification as a major transaction may impact market perception and trading volatility.
• Expansion into Malaysia: This marks a significant geographic diversification for the Group, possibly enhancing its growth profile and attractiveness to investors seeking exposure to Southeast Asian real estate.
• Use of Proceeds: The reinvestment of funds from previous asset sales demonstrates proactive capital management and growth orientation.
• Valuation Alignment: Independent confirmation that the purchase price is at market value may bolster investor confidence.
• Currency Risks: The transaction’s FX sensitivity (MYR vs. SGD) is flagged, indicating possible future impacts depending on exchange rate movements.

Key Documents for Inspection

Sale and purchase agreements, valuation reports, and confirmation letters are available for inspection at the Company’s registered office for three months from the announcement date.

Further Announcements

The Company will provide updates on the acquisition and any material developments, including the outcome of SGX Regco’s determination regarding shareholder approval.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell securities. Investors are urged to conduct their own due diligence and consult professional advisers before making investment decisions. The information herein is based on public disclosures as at the time of writing and may be subject to change.

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