Oct 13, 2011 - PropertyGuru.com.sg
The Royal Brothers, a property group owned by brothers Raj Kumar and Asok Kumar Hiranandani, is being reorganised, involving a swap of assets worth more than S$1 billion between the two owners, according to some sources.
Aimed at succession planning, the exercise will allow their respective sons, Kishin and Bobby, to develop the business as they see fit.
The move includes various properties across Singapore, such as the Royal Brothers Building, Far East Plaza and other Orchard / Scotts Roads buildings, Queensway Shopping Centre, Peninsula Plaza and Cuppage Terrace, as well as strata units in Lucky Plaza.
Asok Kumar will sell his half share in the 999-year leasehold Royal Brothers Building at Malacca Street to RB Capital, a property and hotel outfit owned by Raj Kumar’s son, Kishin. The other half in the building will be held by Raj Kumar.
In addition, Raj Kumar is believed to have taken over his brother’s half share in Cuppage Terrace, a row of 17 conservation shophouses worth more than S$100 million. However, market watchers believe RB Capital could later take a share in this asset.
Asok Kumar is also said to be purchasing his brother’s half share at Lucky Plaza on Orchard Road, while Raj Kumar will buy his brother’s half stake at Far East Plaza along Scotts Road.
Despite the asset swap and restructuring at Royal Brothers, the group will still remain for the purpose of continuing ownership of jointly-held properties.
However, reports indicate that the two sides will likely use different variations of the name Royal to conduct their separate transactions.To contact the journalist, you may send your message to email@example.com