HPC Holdings Ltd. (HPC) announced the formation of StarNova Capital Pte. Ltd., a Singapore joint venture set up to acquire and redevelop a large industrial site in Tuas South into logistics and industrial facilities.
The newly formed vehicle is currently owned 47% by HPC Realty (a wholly owned subsidiary of HPC), 25% by CWT Pte. Ltd., 23% by Lexing Pte. Ltd. (LXP) and 5% by O2 Realty Pte. Ltd. Total project funding is budgeted at S$770.00 million (HK$4.70 billion), with HPC Realty’s pro-rata commitment capped at S$361.90 million (HK$2.21 billion).
Project scope and funding • The JV will first acquire 100% of four adjoining industrial lots at 10–40 Tuas South Street 1 for S$322.00 million. • External bank financing is expected to cover 80 % of the purchase price, while shareholders will provide the remaining 20 % as equity and non-interest-bearing loans. • Redevelopment of the retained 77 % of the site is budgeted at S$378.00 million, with a further S$70.00 million earmarked for taxes, stamp duties, finance and professional fees. • HPC Realty paid an initial deposit of S$6.44 million on 6 February 2026 and will fund an additional S$8.69 million on signing of the sale-and-purchase agreement.
Governance and profit distribution • The JV board will comprise four directors, one nominated by each shareholder; HPC’s nominee will chair the board. • Distributable profits will first service external debt, then repay shareholder loans and equity, after which residual profits will be shared pro rata. If project returns reach 100 %, O2 Realty is entitled to 20 % of any surplus as an incentive for leasing and operational responsibilities.
Exit mechanism CWT may compel the other partners to acquire its entire 25 % stake one year after the project’s temporary occupation permit if neither the project nor the JV interests have been sold. Should CWT exercise this “Exit Right,” HPC Realty would be required to raise its stake by about 15.67 % to 62.67%, turning the JV into a consolidated subsidiary.
Regulatory classification Because the HPC funding commitment and CWT Exit Right each exceed the 100 % size tests under Hong Kong Listing Rule 14, the transaction is deemed a Very Substantial Acquisition. Shareholder approval will be sought at an extraordinary general meeting, and a circular is scheduled for dispatch on or before 27 June 2026.
Strategic rationale Management highlights the site’s proximity to Singapore’s upcoming Tuas Mega Port and major expressways, viewing the area as an emerging logistics hub. Participating through a JV structure allows HPC to limit capital concentration while leveraging its construction arm as the project’s main contractor, potentially adding a new earnings stream and accelerating vertical integration into property development.
Key timeline • Regulatory approvals for redevelopment: targeted May 2027. • Construction commencement: May 2027. • Completion and start of leasing: Q2 2029.
HPC stated that the JV currently has no operating assets beyond the nominal S$100,000 paid-up capital and will remain an associate unless the CWT Exit Right is triggered.