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Singapore Press Holdings gains loan facility for property unit

Singapore Press Holdings says it has signed a deal for an unsecured four-year loan facility of $280 million for its property unit.

The four-year loan from Oversea-Chinese Banking Corp. will be used by SPH's unit Times Properties for it to provide shareholders’ contributions to for TPPL to provide shareholders’ contributions to Elara 1 and Callisto 1.

SPH announced the award of the tender of the site at Upper Serangoon Road by the Housing & Development Board, to Elara 1 and Callisto 1 on June 21.

Each of Elara 1 and Callisto 1 is a 50-50 joint venture company equally and ultimately owned by SPH and Kajima Development, to undertake the mixed commercial and residential development on the site.

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Analysts say the deal underscores the media firm's increasing focus on real estate as a growth vehicle amid falling advertising sales that have hurt its core business.

Shares in SPH are trading 2 cents higher $2.60, though still down nearly 27% so far this year.

This story first appeared on The Edge

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