Pacific International Lines (PIL) has invited offers for its 17-storey office building located at 140 Cecil Street in the heart of Singapore’s business district.
The privately-owned liner company, which is undergoing a financial restructuring, has given a price indication of about SGD 350m ($253m), according to reports in the Singapore Business Times.
Up to eight parties have expressed an interest in the property.
PIL already occupies several floors of the building and is expected to continue to operate from the office block even after sale is completed.
The building is owned by real estate company PIL Realty, a wholly owned subsidiary of PIL Holdings.
The sale is being viewed as a cash-raising exercise and part of the company’s attempts to rebuild its balance sheet.
PIL, which ranks among the top ten liner companies in the world, was hit by the liner market crash which followed the onset of the coronavirus pandemic earlier this year.
Cutting charter payments
It has already drastically reduced its charter hire payments to Japanese shipowners and has enlisted the help of local investment company Heliconia Capital, a part of the Singapore state-backed investment company Temasek Holdings.
Heliconia has already extended about $400m in loans to PIL to help ease its immediate cash flow issues. Heliconia is expected to emerge out of the restructuring as a significant shareholder in PIL.
As part of the restructuring, PIL has agreed with its 15 main financial lenders, that cover 97.6% of its debt, to defer repayment until 31 December. A formal standstill, preventing lenders from taking enforcement actions, has also been agreed until then.
However, one lender declined to join in the agreement and demanded payment of $12.6m.
