Heeton puts $33.1m into 65% Upper Thomson JV with chairman links

Developer forms 65% JV with chairman-linked firms for residential hub

Heeton Holdings will invest about $33.1m in a joint venture (JV) to develop a mixed-use residential and commercial project at Upper Thomson Road, according to a filing at the Singapore Exchange.

Its wholly owned subsidiary Heeton Homes has formed a joint venture company, Thomson Invesco Pte. Ltd., with Astra Horizon Ventures and Hong Heng Company.

Astra and Hong Heng are linked to Heeton executive chairman and controlling shareholder Toh Giap Eng, making the transaction an “interested person transaction” under SGX rules.

In the SGX filing, Heeton said it qualifies for exemption from shareholder approval as funding and risks are shared in proportion to ownership, and the parties had no prior interest in the project.

Heeton Homes will hold a 65% stake in Thomson Invesco, whilst Astra and Hong Heng will hold a 10% and 25% stake, respectively.

The JV will acquire a 5% stake in two project companies responsible for the residential and commercial components of the development.

Funding will come from equity contributions and shareholder loans totalling about $13.5m, of which Heeton’s share is approximately $8.78m.

The partners will also provide guarantees for external bank financing, with Heeton’s portion estimated at $24.32m.

The total exposure represents about 7.85% of Heeton’s net tangible assets as at end-2024.