CWT INT'L (00521) has announced that on March 27, 2026, HPC Realty, LXP, CWT Pte., O2 Realty, and the joint venture company entered into a joint venture agreement to collectively invest in the joint venture for a property redevelopment project in Singapore. Following further commercial negotiations, the parties signed an amended and restated agreement on May 18, 2026. As of the announcement date, the joint venture is held 47% by HPC Realty, 19% by CWT Pte., 29% by LXP, and 5% by O2 Realty.

Under the joint venture agreement and based on CWT Pte.'s equity interest, the initial capital contribution for the property purchase and redevelopment is SGD 15.2892 million. The property is located in Tuas, Singapore, with a total land area of approximately 108,822.1 square meters. An independent valuation sets its market value at approximately SGD 323 million. According to the sale and purchase agreement between the joint venture and the seller, the purchase price for the property is SGD 322 million. After selling a 23% interest in the property, the joint venture will retain approximately a 77% interest for redevelopment, which is intended to develop primarily logistics and industrial facilities for sale.

Redevelopment is expected to occur between July 2027 and July 2030. Based on construction cost certificates issued by a qualified advisor, the total redevelopment cost is estimated not to exceed SGD 378 million. Joint venture shareholders are required to provide equity contributions for the remaining 30% of total costs (including purchase and redevelopment), which will be funded as needed from time to time. CWT Pte.'s expected total contribution for the property redevelopment (including the initial contribution and further contributions) amounts to approximately SGD 51.74899 million. These contributions will be funded from the group's internal resources.

The group's warehouses have been or will be returned to the Singapore government upon lease expiry, creating an urgent need to stabilize the group's warehousing network. The Singapore government plans to relocate its port, warehousing, and supply chain infrastructure westward to Tuas Port by 2040. The property's redevelopment is strategically located in the Tuas area, which helps maintain the group's warehousing scale and seize market opportunities.