SINGAPORE (May 31): United Engineers&rsquo largest shareholders picked Perennial Real Estate Holdings for final talks to buy the century-old Singapore property group, people with knowledge of the matter said.

Perennial, led by Chief Executive Officer Pua Seck Guan, edged out other suitors including KKR & Co. and SingHaiyi Group that also submitted final bids, the people said, asking not to be identified because the information is private. An agreement could be reached as soon as next month for United Engineers, which has a market value of $1.7 billion, according to one of the people.

Any deal will add to the US$11.6 billion ($16 billion) of acquisitions in Singapore&rsquo s real estate industry over the past 12 months, data compiled by Bloomberg show. A buyer of United Engineers would gain a property portfolio that includes Singapore shopping centers like Rochester Mall and mixed-used developments such as UE BizHub City, as well as condominiums, hotels and serviced apartments, according to its website.

The company&rsquo s biggest investors, Oversea-Chinese Banking Corp. and its insurance unit Great Eastern Holdings, said in January they&rsquo re reviewing their stakes in United Engineers and its closely held engineering subsidiary   WBL Corp. Before it proceeds with an offer, Perennial is seeking clarification from Singapore regulators on the procedures for a simultaneous purchase of the investors&rsquo holdings in both companies, according to one of the people.

A deal could be delayed or fall apart, and another buyer could still emerge, the people said. OCBC and Perennial declined to comment in emailed statements, while representatives for KKR and SingHaiyi didn&rsquo t immediately respond to requests for comment.

OCBC, Great Eastern and the bank&rsquo s founding Lee family own more than 30% of United Engineers, people with knowledge of the matter said in September. Buying their shareholdings would trigger a mandatory takeover offer for the company under Singapore rules.

Perennial, a Singapore-based developer and landlord, owns stakes in projects including the Chinatown Point retail and office complex and AXA Tower in the city-state&rsquo s central business district, according to its website.

By  Mindy Tan

PERENNIAL Real Estate Holdings' placement tranche of up to S$100 million for three-year retail bonds which carry a fixed interest of 4.65 per cent per annum has been oversubscribed.

Despite increasing the amount available for subscription up to the limit of S$100 million to meet demand, the placement tranche was oversubscribed with approximately S$130 million of subscriptions received.

" The oversubscription for the placement tranche with subscriptions received of close to S$130 million on the first day of launch is a strong testament of investors' confidence in our quality portfolio, robust balance sheet and reputable sponsors," said Pua Seck Guan, chief executive officer of Perennial Real Estate.

Perennial Real Estate had on Tuesday launched the offer of up to S$150 million of bonds to cater to both the public offer and placement tranche. In view of the oversubscription of the placement tranche, the issuer may choose to increase the amount available for subscription under the public offer tranche, from the remaining S$50 million (available under the initial launch) to up to S$200 million, subject to demand.

Accordingly, the total offer size, including the placement tranche, may be increased to up to S$300 million. Subscriptions under the public offer tranche will be subject to balloting if the total subscriptions exceed the total offer size.

The public offer will close at 9am on Oct 21. The retail bonds are expected to be issued on Oct 23 and commence trading on Oct 26. DBS Bank is the sole lead manager and bookrunner of the offer.

By  Mindy Tan

PERENNIAl Real Estate Holdings is offering for subscription S$150 million of three-year retail bonds which carry a fixed rate of 4.65 per cent per annum.

In the event the public offer is oversubscribed, the issuer may increase the total offer size, by up to an additional S$150 million, to S$300 million. Subscriptions under the public offer will be subject to balloting if total subscriptions exceed the offer size.

" As part of our proactive capital management strategy, the maiden retail bond offering further diversifies our sources of funding and optimises our capital structure," said Pua Seck Guan, chief executive officer of Perennial Real Estate.

The public offer will open for subscription at 9am on Tuesday and will close at 9am on Oct 21. The retail bonds are expected to be issued on Oct 23 and are expected to commence trading on Oct 26.

The net proceeds from the issue of the retail bonds are presently intended to be used for general corporate purposes, including refinancing of existing borrowings and financing of working capital, investments (including mergers and acquisitions) and/or capital expenditure requirements of the issuer or its subsidiaries.

DBS Bank is the sole lead manager and bookrunner for the offer.

By   Claire Huang

PERENNIAL Real Estate Holdings on Tuesday reported a total profit after tax and minority interests (Patmi) of S$33.5 million for the period of about eight months from October 2014 to June 2015.

This was post-completion of the reverse takeover (RTO) of St James Holdings on Oct 27, 2014.

Excluding the one-off transaction cost amounting to S$11.4 million arising from the RTO and the group' s voluntary general offer (VO) for Perennial China Retail Trust (PCRT), Patmi for the period post-RTO amounted to S$44.9 million.

It said operating Patmi for the quarter ended June 2015 was S$8.8 million.