Global Yellow Pages buys majority stake in blockchain proptech firm FundPlaces

By Victoria Haviland 0 Comments NEWS, News

Global Yellow Pages, or GYP, recently said its subsidiary has entered into a conditional agreement to invest in FundPlaces, a proptech company, by subscribing for new shares - about 50.11% of the company - for $2.004 million.

Fundplaces uses the technology for blockchain to operate the online platform that allows investors with the development, financing, and ownership of real estate projects on a global scale.

GYP, filing to the Singapore Exchange, said it plans to seek additional investors to propose the subscription by urging them to get a stake in its subsidiary.

"In the interests of time and to avail itself of this strategic opportunity to invest in FundPlaces [...] the company has decided to first proceed with the proposed subscription," it said in the Singapore Exchange.

Before GYP subscribes, FundPlaces' sole shareholder was Rems Advisors, a Singapore-incorporated company that engages in real estate research that was partly owned by co-founders of FunPlace, Brian Wee and Tan Kok Keong.

The investment is part of its strategy. It will further develop its core property business, including activities like property-related investments, management, and property development.

Shareholders gave the company a diversification mandate that would diversify the property business back in 2015. Since then, it has acquired Pakuranga Plaza and a plot of freehold land in Queenstown, New Zealand. The company also obtained a conditional resource consent from Queenstown Lake District Council in order to build 225 residential housings along with associated infrastructure and site works in Queenstown.

GYP made a move for its third real estate purchase this year by entering an agreement to buy land in Papakura, New Zealand this year.

"Having a strategic stake in FundPlaces through the proposed subscription would allow the group to continually leverage on the FundPlaces platform as an additional avenue for the group to raise funds for its property development projects, which would synergistically benefit and complement the group's property business," GYP stated.

The company says it also sees a potential in the FundPlaces platform.

GYP's subsidiary and Rems will enter into a shareholder's agreement after the completion of the first tranche subscription. The agreement includes terms that each side will be entitled to appoint two directors to the board of FundPlaces.

The subsidiary will appoint the chairman of the board, who will have a casting vote at any board meeting when there is a tie in the voting.

Rems, under the agreement, will not dispose of its shares in FundPlaces prior to an initial public offering of the shares in FundPlaces.

The company plans to finance the share subscription using its own funds and/or bank loans, while GYP plans to finance the share subscription using internal funds and/or bank borrowings.

Leave a comment

Your email address will not be published.