SINGAPORE, Jan 6 (Reuters) - Shares of Singapore consumer electronics firm TT International surged as much as 23 percent on Friday, extending gains from the previous session, on hopes that a private equity firm will invest at least S$200 million ($154.6 million) into its real estate project.
At 0140 GMT, TT International shares were up 20 percent at S$0.048 on a volume of 9.6 million shares, 6.5 times the average daily volume in the last 30 days.
TT International said earlier this week it had entered into a heads of agreement with Lucrum Capital for a potential investment in the company’s Big Box warehouse retail project in Jurong, western Singapore.
“If you look at how developers have gone into that area, and given the plan that the URA (Urban Redevelopment Authority) has for the entire region, I think the long-term prospects are quite promising,” said Wilson Liew, an analyst at Kim Eng.
“There will be new offices and residential sites coming up. The process of developing the whole area is already underway,” Liew said, noting that TT International’s project combines both warehousing and shopping space.
Under the deal, Lucrum Capital’s subsidiary, Lucrum Development (Singapore), will have the option to acquire up to a 49 percent stake in the project. TT International will hold the remaining stake.
TT International said it has to date invested S$95 million in the project, which is targeted for completion by end-2013. ($1 = 1.2936 Singapore dollars) (Reporting by Eveline Danubrata)