UPMARKET condo builder Wheelock Properties’ stake in real estate developer Hotel Properties (HPL) has fallen slightly from 20.97 per cent to 19.99 per cent.
According to HPL, the dilution in Wheelock’s stake was due to a series of factors. These included sales on the open market, a rights issue and an increase in the total number of HPL shares because of allotment of new shares under its share option scheme and performance share plan.
Wheelock became one of the largest shareholders in HPL three years ago, when it bought the stake from GuocoLand.
But it has held the stake as a passive investment, leaving another major HPL shareholder and managing director Ong Beng Seng to run the company.
Both companies, however, have substantial exposure in the posh Orchard Road area, with Wheelock owning an upmarket office-cum-shopping centre development, and HPL running hotels there.
Besides the HPL stake, Wheelock also has a stake in another upmarket developer SC Global Developments.
HPL shares ended flat at $2.13, while Wheelock closed four cents down at $2 yesterday.
Source: Straits Times, 19 Dec 2009